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Mr. Mehta was planning to purchase shares of ABC Ltd. The stock is currently trading at Rs 12 per share. As per analysts reports the

Mr. Mehta was planning to purchase shares of ABC Ltd. The stock is currently trading at Rs 12 per share. As per analysts reports the expected dividend next year was Rs 1.50. The price per share of stock ABC Ltd a year hence is expected to have the following probability distribution: Probability of 0.35 for price of Rs 13, Probability of 0.4 for price of Rs 14, Probability of 0.25 for price of Rs 15. Find the expected return from the stock for a holding period of one year.

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