Return distribution of the investment


The expected return for an investment is 30%. If we know the following information about the return distribution of the investment, what return will the investment produce if the economic climate is average?

Climate    Return    Probability

Poor          20%        0.30
Average                   0.50
Exceptional 40%       0.20

Solution Preview :

Prepared by a verified Expert
Finance Basics: Return distribution of the investment
Reference No:- TGS01450531

Now Priced at $20 (50% Discount)

Recommended (99%)

Rated (4.3/5)