Question: Next Year Economy Can Be Good, Normal Or Bad. Assuming Next Year’s Economic State Will Occur Based On Republic Of Turkey’s Quarterly Economic Growth Rates At Past. Good = ( Number Of Times 5.5 % < Growth ) / Number Of Quarters Normal = ( Number Of Times 0 < Growth < 5.5 % ) / Number Of Quarters Bad = ( Number Of Times Growth < 0 ) / Number Of Quarters ...

businessfinancefinance questions and answersNext Year Economy Can Be Good, Normal Or Bad. Assuming Next Year’s Economic State Will Occur …Question: Next Year Economy Can Be Good, Normal Or Bad. Assuming Next Year’s Economic State Will Occur Based On Republic Of Turkey’s Quarterly Economic Growth Rates At Past. Good = ( Number Of Times 5.5 % < Growth ) / Number Of Quarters Normal = ( Number Of Times 0 < Growth < 5.5 % ) / Number Of Quarters Bad = ( Number Of Times Growth < 0 ) / Number Of Quarters ...This question hasn't been answered yetAsk an expertNext year economy can be good, normal or bad. Assuming next year’s economic state will occur based on Republic of Turkey’s quarterly economic growth rates at past. Good    = ( number of times 5.5 % < growth               ) / number of quarters Normal = ( number of times         0 < growth < 5.5 % ) / number of quarters Bad      = ( number of times               growth < 0         ) / number of quarters Number of quarters will be deducted for the period from July 2015 to July 2018 Ex: from July 2016 to July 2017 with quarter performances -1, 3, 4 , 7 % -> good = bad = ¼ , normal = ½
Compute the E(return) for the stock of Corporation1 whose data
of expected return of the stocks for next year is
given below:

Bad

Normal

Good

E(return)

probability

E(return)

probability

E(return)

probability

-0.50

0.2

-0.30

0.2

-0.10

0.2

-0.40

0.1

-0.20

0.1

0.00

0.1

-0.30

0.1

0.00

0.1

0.10

0.1

0.00

0.3

0.10

0.3

0.20

0.3

0.10

0.1

0.20

0.1

0.30

0.1

0.20

0.2

0.30

0.2

0.40

0.2

Expert Answer