Expected return. Hull Consultants, a famous think tank in the Midwest, has provided probability estimates...
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Expected return. Hull Consultants, a famous think tank in the Midwest, has provided probability estimates for the four potential economic states for the coming year. The probability of a boom economy is 15%, the probability of a stable growth economy is 15%, the probability of a stagnant economy is 49%, and the probability of a recession is 21%. Estimate the expected returns on the following individual investments for the coming year. Forecasted Returns for Fach Economy Stable Investment Boom Growth Stagut Recession Stock 23% 14% 2% - 14% Corporate bond 9% 8% 5% 3% Government bond 8% 7% 4% 2% Hint. Make sure to round ali intermediate calculations to at least seven (7) decimal places. The input instructions, phrases in parenthesis after each answer box, only apply for the answers you will type What is the expected return of the stock investment? 0% (Round to two decimal places.) Enter your an
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