10.8

Consider the probability distribution of the rate of return on Paula Mitch stock: Rate of Return Probability 40% 0.25 15% 0.55 8% 0.20 Compute the expected rate of return on Paula Mitch stock.

Must show work/calculation

Select one: a. 9.75% b. 15.60% c. 16.65% d. 19.85%