State of Probability Return

# State of Probability Return - State of Probability Return...

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Unformatted text preview: State of Probability Return Economy (P) Utility Hi-Tech Recession 0.20 4% -10% Normal 0.50 10% 14% Boom 0.30 14% 30% For each firm, the expected return on the stock is just a weighted average of return and corresponding probability: k = P(k 1 )*k 1 + P(k 2 )*k 2 + ...+ P(k n )*k n State of Probability Return Economy (P) Utility Hi-Tech Recession 0.20 4% -10% Normal 0.50 10% 14%Normal 0....
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## This note was uploaded on 11/21/2011 for the course BUS M 301 taught by Professor Jimbrau during the Summer '11 term at BYU.

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State of Probability Return - State of Probability Return...

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