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Author Question: The Table below presents returns across three states of nature for two assets: Risky and Safe. The ... (Read 56 times)

OSWALD

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on: Apr 25, 2021
The Table below presents returns across three states of nature for two assets: Risky and Safe. The expected return on Safe is 8.4%. Which asset has a higher expected return?

State of NatureProbabilityReturn to Risky InvestmentReturn to Safe Investment
Recession0.2-5%14%
Normal0.615%8%
Boom0.225%4%

◦ Risky
◦ Safe
◦ Both have the same expected return.
Corporate Finance Online ¦ Eakins, McNally ¦ 2nd Edition
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Marked as best answer by OSWALD on Apr 25, 2021

yasmin

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Reply #1 on: Apr 25, 2021
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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OSWALD

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Reply 2 on: Apr 25, 2021
Great answer, keep it coming :)

Sarahjh

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

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