Assume that you expect to hold a $40,000 investment for one year. It is forecasted to have

Question:

Assume that you expect to hold a $40,000 investment for one year. It is forecasted to have a yearend value of $42,000 with a 30% probability; a year end value of $48,000 with a 45% probability; and a yearend value of $60,000 with a 25% probability.
What is the expected holding period return for this investment?