Assume that next year we can have three possible states of
Assume that next year, we can have three possible states of world with the following probabilities of occurring: 20%, 45%, and 35%. The returns of an asset in each state are 18%, 5%, and -8%. What is the expected return for this asset?
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assume that next year we can have three possible states of world with the following probabilities of occurring 20 45
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