Question: Learning objective: Calculate the expected return on a single period investment. you invest $500 in a stock that has a 30% chance of a 40%
Learning objective: Calculate the expected return on a single period investment.
you invest $500 in a stock that has a 30% chance of a 40% return, a 50% chance of a 6% return and a 20% chance of a 12% return.
What is your expected return after one year?
A. 6.6%
B. 5.8%
C. 7.2%
D. 8.0%
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
