Learning objective: Calculate the expected return on a single period investment.

you invest $500 in a stock that has a 30% chance of a 40% return, a 50% chance of a 6% return and a 20% chance of a 12% return.

What is your expected return after one year?

A. 6.6%

B. 5.8%

C. 7.2%

D. 8.0%