Peet's Coffee 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) Peet's Coffee stock one year from now:

Price Rate of Return Probability $15 -40.0% 0.22 $20 -20.0% 0.30 $32 +28.0% 0.15 $40 +60.0% 0.33

Assuming that Peet's Coffee is not expected to pay any dividends during the coming year, determine the expected rate of return on Peet's Coffee Stock.

Question 12 options:

	7.00%
	9.20%
	24.00%
	19.80%