The expected return for stock A and B is 8.55% and 15.11% respectively.
<h3>What is the Expected return?</h3>
= (Probability of Recession × Return during recession) + (Probability of normal × Return during normal) + (Probability of boom × Return during boom)
Expected return for stock A:
= (0.20 * .05) + (0.57 * 0.08) + (0.23 * 0.13)
= 0.0855
= 8.55%
Expected return for stock B:
= (0.20 * 0.20) + (0.57 * 0.09) + (0.23 * 0.26)
= 0.1511
= 15.11%
Therefore, the expected return for stock A and B is 8.55% and 15.11% respectively.
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A news article details the destruction of a recent earthquake. Readers of the article likely to do as result are Overestimate their risk of earthquakes. Thus option A is correct.
<h3>What is Earthquake?</h3>
Earthquakes is referring to a kind of natural disaters which occurs due to the movement of tectonic plates. when these tectonic plates move and collapse with one another results in an earthquake.
When a news article shows destruction related to earthquakes people will most likely analyze their risk from earthquakes and evaluate whether they are safe from them or not.
Therefore, option A is appropriate.
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Tequila Ley, at $ 3,500,000
It would cost me a fortune tbh like software e cost is like the best thing to ever exist so you won’t regret nothin
Answer:
B will be your answer for the problem
