Question: Based on the following probability distribution, what is the securitys expected return? State Probability r___ 1 0.2 -5.0% 2 0.3 10.0 3 0.5 30.0

Based on the following probability distribution, what is the securitys expected return?

State Probability r___

1 0.2 -5.0%

2 0.3 10.0

3 0.5 30.0

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