What is the expected share return given the following macro-economic probabilities? Probability of recession 20% - Share return 5%; Probability of steady state 60% - Share return 10%; Probability of boom 20% - Share return 15%

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12%
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7%
8%

Probability determines the chances that an event would happen. The probability the event occurs is 1 and the probability that the event does not occur is 0. The more likely the event is to happen, the closer the probability value would be to 1. The less likely it is for the event not to happen, the closer the probability value would be to zero.

The expected share return = (0.2 x 5) + (0.6 x 10) + (0.2 x 15%)

1 + 6 + 3 = 10%

To learn more about percentages, please check: https://brainly.com/question/25764815

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What is the expected share return given the following macro-economic probabilities? Probability of recession 20% - Share return 5%; Probability of steady state 60% - Share return 10%; Probability of boom 20% - Share return 15% Review Later 12% 10% 7% 8%

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What is the expected share return?

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What is the expected share return given the following macro-economic probabilities? Probability of recession 20% - Share return 5%; Probability of steady state 60% - Share return 10%; Probability of boom 20% - Share return 15%

Review Later
12%
10%
7%
8%