A hypothetical stock with a 20% probability of a -10% return (recession), a 50% probability of a 5% return (stable growth), and a 30% probability of a 15% return (boom) serves as an example of a probability distribution for investment returns.

Authors

• Person: Not available Organization: Pressbooks
  Chapter 8 – Risk and Return – Fundamentals of Finance

Sources

• Chapter 8 – Risk and Return – Fundamentals of Finance pressbooks.pub Pressbooks via serper

Referenced by nodes (4)

• stocks concept
• recession concept
• investment return concept
• probability distribution concept