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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
Hull Consultants, a famous think tank in the Midwest, has provided probability estimates for the four potential economic states for the coming year. The probability of a boom economy is 14%, the probability of a stable growth economy is 17%, the probability of a stagnant economy is 48%, and the probability of a recession is 21%. Estimate the expected returns on the following individual investments for the coming year.
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|
Investment |
Forecasted Returns for Boom Economy |
Forecasted Returns for Stable Growth Economy |
Forecasted Returns for Stagnant Economy |
Forecasted Returns for Recession Economy |
|
Stock |
29% |
15% |
2% |
-15% |
|
Corporate bond |
9% |
7% |
5% |
4% |
|
Government bond |
8% |
6% |
4% |
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