Question: Consider the following probability distribution of returns for Alpha Corporation: Current Stock Price ($) Stock Price in One Year ($) Return R Probability PR $35

Consider the following probability distribution of returns for Alpha Corporation:

Current Stock Price ($) Stock Price in One Year ($) Return R Probability PR
$35 40% 25%
$25 $25 0% 50%
$20 -20% 25%

The expected return for Alpha Corporation is closest to:

6.67%

10.0%

5.00%

0.00%

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