|Stock Return||Probability of that Return||Expected Return / (Return x Probability)|
|1%+5.5%+5% = 11.5%|
11.5% = Expected Value of the Stock Return
Hello! I’m confused how they got the 1%, 5.5%, and 5% in the third column?
Can someone write out the equations for me? This feels like it should be obvious but, I can’t for the life of me figure it out. Thanks! Get Finance homework help today
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