The Probability and Return for the four financial instruments are given for your reference in the below table. State of Economy Probability Habib Bank Middle East Financials Pandemic 18% 2% 13% Recession 28% 16% 8% Normal 14% 9% 30% Before Pandemic 40% 25% 40% Calculate the expected return of Habib Bank during the recession period? 0.0448 0.0126 0.1610 0.0036

Algebra & Trigonometry with Analytic Geometry
13th Edition
ISBN:9781133382119
Author:Swokowski
Publisher:Swokowski
Chapter10: Sequences, Series, And Probability
Section: Chapter Questions
Problem 35T
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Q41
The Probability and Return for the four financial instruments are given for your reference in the below table.
State of Economy Probability Habib Bank Middle East Financials
Pandemic
18%
2%
13%
Recession
28%
16%
8%
Normal
14%
9%
30%
Before Pandemic
40%
25%
40%
Calculate the expected return of Habib Bank during the recession period?
0.0448
0.0126
0.1610
0.0036
Transcribed Image Text:The Probability and Return for the four financial instruments are given for your reference in the below table. State of Economy Probability Habib Bank Middle East Financials Pandemic 18% 2% 13% Recession 28% 16% 8% Normal 14% 9% 30% Before Pandemic 40% 25% 40% Calculate the expected return of Habib Bank during the recession period? 0.0448 0.0126 0.1610 0.0036
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