1. You are trying to make your best guess about next year's return on Snapchat's stock, using the following information that is available to you today:

• If Snapchat is very profitable, the return next year will be 18%.

• If Snapchat does alright, the return next year will be 13%.

• If Snapchat does poorly, the return next year will be -2%.

• If Snapchat faces its worst case scenario, the return next year will be -23%.

• All of the above scenarios are equally likely.

• Calculate Snapchat's next year's expected return. (Type your answer in %, but do NOT use the "%" sign. For example, if you got 12.34%, put simply 12.34. Round your answer to TWO decimal places.)