Question: Measures of Central Tendency - Expected Value Stock Return Probability of that Return Expected Return / (Return x Probability) 5% 20% 1.00% 10% 55% 5.50%
| Stock Return | Probability of that Return | Expected Return / (Return x Probability) |
| 5% | 20% | 1.00% |
| 10% | 55% | 5.50% |
| 20% | 25% | 5.00% |
| 1%+5.5%+5% = 11.5% |
11.5% = Expected Value of the Stock Return
Hello! I'm confused how they got the 1%, 5.5%, and 5% in the third column?
Can someone write out the equations for me? This feels like it should be obvious but, I can't for the life of me figure it out. Thanks!
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