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You are interested in investing into 2 stocks, KODK and TSLA. The table below presents the returns of the stocks in different states and the

You are interested in investing into 2 stocks, KODK and TSLA. The table below presents the returns of the stocks in different states and the states corresponding probability.

Probability

KODKs Return next year

TSLAs Return next year

.15

-0.10

0.05

.15

-0.20

-0.05

.35

0.00

0.15

.35

0.15

0.30

How much is the expected rate of return if you invest into KODK?

A)

-0.75%

B)

0.75%

C)

1.50%

D)

-1.75%

E)

1.75%

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