Question: Expected Return: Discrete Distribution A stock's return has the following distribution: Calculate the stock's expected return based on the information given above. SHOW ALL WORK

Expected Return: Discrete Distribution A stock's return has the following distribution: Calculate the stock's expected return based on the information given above. SHOW ALL WORK AND EXPLAIN ANSWER.

Demand for the Probability of This Rate of Return if This
Company's Products Demand Occurring Demand Occurs (%)
Weak 0.1 -40%
Below average 0.2 -8
Average 0.4 8
Above average 0.2 25
Strong 0.1 70

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