Frankfurt-Bismarck Company common stock is currently selling for $20 per share. Security analysts at Compuser Analysts' have assigned the following probability distribution to the price of (and rate of return on) Frankfurt-Bismarck stock one year from now:

Price

Rate of Return

Probability

$16

-20%

0.25

20

0%

0.30

24

+20%

0.25

28

+40%

0.20

Assuming that Frankfurt-Bismarck is not expected to pay any dividends during the coming year, determine the expected rate of return on Frankfurt-Bismarck Stock.