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Leonard purchases a share for $20 today. He has the following expectation on the share price in one year. Probability Share Price 30% $35 50%

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Leonard purchases a share for $20 today. He has the following expectation on the share price in one year. Probability Share Price 30% $35 50% $25 20% $12 The share is expected to pay a dividend of $2 in one year. Calculate the expected return of the share over the 12 months for Leonard. Which of the following can be used to find the expected return of the share over the 12 months for Leonard? (Only one correct answer) (2 marks) 00.3*(35-20)/20+0.5* (25-20)/20+0.2* (12-20)/20 00.3* (37-20)/20+0.5*(27-20)/20+0.2*(14-20)/20 00.3*37/20+0.5*27/20+0.2*14/20 00.3*35/20+0.5*25/20+0.2*12/20 The expected return is % (Round your answer to a percentage of 2 decimals without the "%" sign. E.g. if you answer is 0.12345, you should input "12.35") (1 mark)

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