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Given the Following Probability Distributions, What Are the Expected Returns

Question 55

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Given the following probability distributions, what are the expected returns for the Market and for Security J?  Given the following probability distributions, what are the expected returns for the Market and for Security J?      \begin{array}{cccc} \text { State }&\mathrm{PR}_{J}&\mathrm{r}_{\mathrm{m}}&\mathrm{r}_{\mathrm{J}}\\ 1 & 0.3 & -10 \% & 40 \% \\ 2 & 0.4 & 10 & -20 \\ 3 & 0.3 & 30 & 30 \end{array}   a.  10.0 \% ; 11.3 \%  b.  9.5 \% , 13.0 \%  c.  10.0 \% ; 9.5 \%  d.  10.0 \% ; 13.0 \%  e.  13.0 \% ; 10.0 \%  Given the following probability distributions, what are the expected returns for the Market and for Security J?      \begin{array}{cccc} \text { State }&\mathrm{PR}_{J}&\mathrm{r}_{\mathrm{m}}&\mathrm{r}_{\mathrm{J}}\\ 1 & 0.3 & -10 \% & 40 \% \\ 2 & 0.4 & 10 & -20 \\ 3 & 0.3 & 30 & 30 \end{array}   a.  10.0 \% ; 11.3 \%  b.  9.5 \% , 13.0 \%  c.  10.0 \% ; 9.5 \%  d.  10.0 \% ; 13.0 \%  e.  13.0 \% ; 10.0 \%  State PRJrmrJ10.310%40%20.4102030.33030\begin{array}{cccc}\text { State }&\mathrm{PR}_{J}&\mathrm{r}_{\mathrm{m}}&\mathrm{r}_{\mathrm{J}}\\1 & 0.3 & -10 \% & 40 \% \\2 & 0.4 & 10 & -20 \\3 & 0.3 & 30 & 30\end{array}

a. 10.0%;11.3%10.0 \% ; 11.3 \%
b. 9.5%,13.0%9.5 \% , 13.0 \%
c. 10.0%;9.5%10.0 \% ; 9.5 \%
d. 10.0%;13.0%10.0 \% ; 13.0 \%
e. 13.0%;10.0%13.0 \% ; 10.0 \%

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