Consider the following probability distribution Probability 0.10 Return -20% 5% 0.20 0.40 0.30 12% 30% Calculate the expected return for this security. O None of the other answers are correct O 12.80% O 10.35% O 16.80% O 11.20% Choose the correct statement regarding expected return If stock A has an expected return of 7% and stock B has an expected return of 12%, stock B will generate a higher return for investors over the next year than stock A. None of the the other answers is correct An expected return of 10% means that our most likely return for the next year is 10% An expected return of 10% means that we will earn 10% on our investment over the next year