Given the following probability distributions, what are the expected returns for the Market and for Security J? Statei Pr i rM rJ 1 0.3 −10% 40% 2 0.4 10 −20 3 0.3 30 30 Group of answer choices 10.0%; 11.3% 9.5%; 13.0% 10.0%; 9.5% 10.0%; 13.0% 13.0%; 10.0%

Given the following probability distributions, what are the expected returns for the Market and for Security J? Statei Pr i rM rJ 1 0.3 −10% 40% 2 0.4 10 −20 3 0.3 30 30 Group of answer choices 10.0%; 11.3% 9.5%; 13.0% 10.0%; 9.5% 10.0%; 13.0% 13.0%; 10.0%

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Given the following probability distributions, what are the expected returns for the Market and for Security J?

State_i	Pr _i	r_M	r_J
1	0.3	−10%	40%
2	0.4	10	−20
3	0.3	30	30

Group of answer choices

10.0%; 11.3%

9.5%; 13.0%

10.0%; 9.5%

10.0%; 13.0%

13.0%; 10.0%

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