Question 5 6 points Save Answer Two analysts are in a heated argument about the...
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Question 5 6 points Save Answer Two analysts are in a heated argument about the expected return of a stock and the probability of a global pandemic. They agree that there are 4 possible states of the world. and that the return on the stock In each state is given as Return State Boom Normal Bust Pandemic 30% 10% -10% -B0% They also agree that a 'boom' will happen with probability - 20% and that'normal' will happen box of the time. Their disagreement is over the relative probabilities of "bust' and "pandemic. Finally someone comes in and yells 'THE EXPECTED RETURN ON THE STOCK IS 0.005 and they agree that it's settled. What is the probability of the 'Pandemic state? **Please only use numbers and NOT percentages. Ve if you want there to be 5% probability type only snotos or X Only enter og what you mean is 1/20 of 1X. or
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