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Category > Business & Finance Posted 13 Jul 2017 My Price 12.00

Probabilities for three states of the economy,

Probabilities for three states of the economy, and probabilities for the returns on a particular stock in each state are shown in the table below.

State of
Economy

Probability of
Economic State

Stock Performance

Probability of
Stock Performance
in Given
Economic State

Good

.3

Good

.6

   

Neutral

.3

   

Poor

.1

Neutral

.5

Good

.4

   

Neutral

.3

   

Poor

.3

Poor

.2

Good

.2

   

Neutral

.3

   

Poor

.5

The probability that the economy will be neutral and the stock will experience poor performance is

a. .06.

b. .15.

c. .50.

d. .80.

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Status NEW Posted 13 Jul 2017 04:07 PM My Price 12.00

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