question archive Consider the following probability distribution of returns on stock XY2
Consider the following probability distribution of returns on stock XY2
Subject:FinancePrice:2.86 Bought3
Consider the following probability distribution of returns on stock XY2. What is the expected return of stock XYZ? (Enter your answer as a percentage rounded to 2 decimal places. For example, enter 8,43%. Instead of 0.0843) Return -896 Probability 0.20 0.40 0.40 1195 21%
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Calculating the Expected return of XYZ:-
| Prob (P) | Stock Return | (P)*Stock Return |
| 0.20 | -8% | -1.60% |
| 0.40 | 11% | 4.40% |
| 0.40 | 21% | 8.40% |
| 1.00 | 11.20% |
Expected return of XYZ is 11.20%%
