Four analysts cover the stock of Fluorine Chemical. One forecasts a 6​% return for the coming year. The second expects the return to be −5​%. The third predicts a return of 11​%. The fourth expects a...


Four analysts cover the stock of Fluorine Chemical. One forecasts a 6​% return for the coming year. The second expects the return to be −5​%. The third predicts a return of 11​%. The fourth expects a 3​% return in the coming year. You are relatively confident that the return will be positive but not​ large, so you arbitrarily assign probabilities of being correct of 34%, 8%​, 19%​, and 39​%,​ respectively, to the​ analysts' forecasts. Given these​ probabilities, what is Fluorine​ Chemical's expected return for the coming​ year?



Jun 02, 2022
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