Darren has the option of investing in Stocks A or Stocks B. The probability that the return on Stocks A will be 25% is 0.45, 14% is 0.25, and 4% is 0.30. The probability that stock B will return 30% is 0.30, 9% is 0.25, and 2% is 0.30. Given the probability distributions of the two investments, what is the expected rate of return for stock A and stock B?

Answer rating: 100% (QA)

To calculate the expected rate of return for stock A and stock B we need to multiply each possible ... View the full answer