Question: Please solve and explain 15-1 Based on the following probability distribution, what is the securitys expected return? State Probability r 1 0.2 -5.0% 2 0.4
Please solve and explain
15-1 Based on the following probability distribution, what is the securitys expected return?
| State | Probability | r |
| 1 | 0.2 | -5.0% |
| 2 | 0.4 | 10.0 |
| 3 | 0.4 | 30.0 |
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