Question: Calculate the expected return on a stock that has a 35-percent probability of a 43-percent return, a 35-percent probability of a 53-percent return, and a

Calculate the expected return on a stock that has a 35-percent probability of a 43-percent return, a 35-percent probability of a 53-percent return, and a 30-percent probability of a 28-percent return.

A. 42.00 percent

B. 37.25 percent

C. 46.75 percent

D. 43.75 percent

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Calculate the expected return on a stock that has a 35-percent probability of a 31-percent return, a 35-percent probability of a 41-percent return, and a 30-percent probability of a 16-percent...

Calculate the expected return on a stock that has a 35-percent probability of a 47-percent return, a 40-percent probability of a 57- percent return, and a 25-percent probability of a 32-percent...

Calculate the expected return on a stock that has a 40-percent probability of a 33-percent return, a 35-percent probability of a 28-percent return, and a 25-percent probability of a 10-percent...

Calculate the expected return on a stock that has a 25-percent probability of a 33-percent return, a 45-percent probability of a 43-percent return, and a 30-percent probability of a 18-percent...

Calculate the expected return on a stock that has a 30-percent probability of a 21 -percent return, a 40 -percent probability of a 26 percent return, and a 30-percent probability of a 11-percent...

Current Attempt in Progress Calculate the expected return on a stock that has a 2 5 - percent probability of a 4 5 - percent return, a 4 5 - percent probability of percent return, and a 3 0 - percent...

Calculate the expected return on a stock that has a 40-percent probability of a 33-percent return, a 35-percent probability of a 28 percent return, and a 25 -percent probability of a 10-percent...

View Policies Show Attempt History Current Attempt in Progress Astock was purchased at $44.00 one year ago and is now worth $46.00 lt paid four quarterly dividends of $1.50 per share each throughout...

Calculate the expected return on a stock that has a 39% probability of a 11% return, a 15% probability of a 5% return, and a 46% probability of a -11% return. The expected return on this stock is %....

Calculate the expected return on a stock that has a 35% probability of a 13% return, a 30% probability of a 4% return, and a 35% probability of a -11% return. The expected return on this stock is:...

Drug King transfers credit card receivables to InsureAll. The credit card receivables have a fair value of $100 (book value is $99) and were transferred to InsureAll for $150. The transfer includes...

The temperature inside a room housing computer servers is important to proper function. A Google search for "server room temperature" yields the following: According to OpenXtra, server room...

27.09

In order to create an ethical company culture, the first objective of ethics training is to: assign upper - level managers to be in charge of ethical responsibilities. delegate the ethical decision -...

=+media platform you like. Evaluate and note the current social media trends highlighted for this country in the We Are Social and Hootsuite global social media report, available at...

=+4. What ethical and professional guidelines do journalists and media professionals need to follow when it comes to social media?

=+1. Of the four areas covered in this chapter (sports, entertainment, crisis communication, and journalism), which profession would you want to pursue, and why?