A stockbroker calls you and suggests that you invest in the Lauren Computer Company. After analyzing the firm s annual report and other material, you believe that the distribution of expected rates of return is as follows:

LAUREN COMPUTER CO.

Possible Rate of Return Probability

0.60 0.05

0.30 0.20

0.10 0.10

0.20 0.30

0.40 0.20

0.80 0.15

Compute the expected return [E (Ri )] on Lauren Computer stock.