Paccar Corporation common stock is currently selling for $25 per share. Security analysts at Goldman Sachs have assigned the following probability distribution to the price of (and rate of return on) Paccar Corporation stock one year from now:

Price Rate of Return Probability $15 -40.0% 0.28 $20 -20.0% 0.25 $32 +28.0% 0.29 $40 +60.0% 0.18

Assuming that Paccar Corporation is not expected to pay any dividends during the coming year, determine the expected rate of return on Paccar Corporation Stock

28.00%

2.72%

5.18%

27.20%