__PRESENT

Whitney Company common stock is currently selling for $20 per share. Security analysts at Jonathan LLC have assigned the following probability distribution to the price of (and rate of return) on Whitney stock one year from now. Assuming that Whitney is not expected to pay any dividends during the coming year, determine the expected rate of percentage return on Whitney stock. Price $16 20 24 28 Rate of Return -20% 0% +20% +40% Probability 0.25 0.30 0.25 0.15