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You are an analyst covering the pharmaceuticals Industry sector. You need to come up with...

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Finance

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You are an analyst covering the pharmaceuticals Industry sector. You need to come up with an estimate of how you think the stock of Kilo & Xray will perform in the next year. Much of their future will depend on the results of trials for their next generation cholestoral drug. To support your estimate, you have decided on 3 possible probabilitles from the market after they announce the findings of the stage 3 trials. The company will either miss, meet, or far exceed the Industry analyst expectation of earnings based on the results. Trials Results Probability of Results Rate of Return Based on Results Fall As expected Better Results .30 32 .23 47 .13 Calculate the expected return based on how they performed in the product trials. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 12.34.) Expected return What is the formula you used to calculate your answer? (Write the number of the formula you used to calculate your answer) Formula Number

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