Question 23

Calculate the expected rate of return for a stock which has the following probability distribution of returns:

80%

11.0%

11.7%

12.0%

15.0%

Question 23 (2 points) Calculate the expected rate of return for a stock which has the following probability distribution of returns: Probability Scenario Recention Normal Bom Return -5% 5 1 25% 8.0% 11.0% 11.7% 12.0% 15.0%