Homework answers / question archive / The table provided below provides the probability of outcomes for various states of the economy and the corresponding rates of return for a security Economic Status    Probability        Rate of Return   Weak Economy          0

The table provided below provides the probability of outcomes for various states of the economy and the corresponding rates of return for a security Economic Status    Probability        Rate of Return   Weak Economy          0

Finance

Share With

The table provided below provides the probability of outcomes for various states of the economy and the corresponding rates of return for a security

Economic Status    Probability        Rate of Return  

Weak Economy          0.10                 -5%

Static Economy           0.65                  5%

Strong Economy          0.25                 10% 
What is your expected rate of return [E(Ro] for next year?