You are a financial analyst, and you are tasked with calculating the expected return and...
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Finance
You are a financial analyst, and you are tasked with calculating the expected return and standard deviation of returns for Kershaw Enterprises. Toward that end you are given the following data: In an expanding economy Kershaw is expected to earn 5.30% In a booming economy Kershaw is expected to earn 9.50%; In a contracting economy Kershaw is expected to earn 3.50% In a recession Kershaw is expected to earn -1.20%; The probabilities for expansion, boom, contraction and recession are 20%, 25%, 35% and 20% respectively. Calculate the mean return for the distribution. Report the percentage to 2 decimal places
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