Page 19 - DBP5043
P. 19
MEASUREMENT OF RETURN
Example 2:
Economic Probability Rate of Rate of Rate of
conditions (%) Return Return on Return on
on Stock A Stock B Stock C
R
(RM) (RM) (RM)
Growing 30 2800 1870 3000
Stable 40 2500 1700 2500
Declines 30 1800 1450 2000
Based on the example above, you are required to calculate the expected
rate of return for investments in Stock A, B and C.
R A =
R B =
R C =
