In the following year, there is a 10% chance of a bear market, a
20% chance of a bull market, and a 70% chance of a neutral
market.
Debt will return -2%, 5%, and 5% in the bear, bull and neutral
market, respectively.
Equity will return -15%, 15%, and 8% in the bear, bull and neutral
market , respectively .
What is the expected return of debt in %? (round to 1
decimal place)
What is the volatility of equity in...