Chapter 8: Risk and Rates of Return Q11. Taggart Inc''s stock has a 40% chance of producing a 25% return, a 40% chance of producing a 10% return, and a 20% chance of producing a 28% return. What is the firm's expected rate of return? a. 8.40% b. 8.65% c. 8.90% d. 9.15% e. 9.40%