Determine expected growth and risk measure of the growth
Macroeconomics
A Company is planning whether to increase into a new territory. It has estimated the following according to possible changes in the economy. Determine their expected growth and risk measure of the growth.
Economic Improvement Probability Growth
Gets Worse 20% -20%
no change 35% 0&
improves some 30% 5%
improve much 20% 35%
Does one use the following equation expected (mean) return to solve problem: expected return=E[R]=Sum Pr*R
