What is the expected return of the following investment? Probability pays off 0.3 ................... 30.0 0.2 ...................

Question:

What is the of the following investment?
Probability pays off
0.3 ................... 30.0
0.2 ................... 10.0
0.5 ................... -2.0

Expected Return
The expected return is the profit or loss an investor anticipates on an investment that has known or anticipated rates of return (RoR). It is calculated by multiplying potential outcomes by the chances of them occurring and then totaling these...