Use the following table to calculate the expected return for the asset. Return P

Question

Use the following table to calculate the expected return for the asset.
Return Probability 0.05 0.1 0.1 0.15 0.15 0.5 0.25 0.25 Question 40 options: a) 15.75% b) 16.75% c) 13.75% d) 12.50% Use the following table to calculate the expected return for the asset.
Return Probability 0.05 0.1 0.1 0.15 0.15 0.5 0.25 0.25 Use the following table to calculate the expected return for the asset.
Return Probability 0.05 0.1 0.1 0.15 0.15 0.5 0.25 0.25 Return Probability 0.05 0.1 0.1 0.15 0.15 0.5 0.25 0.25 a) 15.75% b) 16.75% c) 13.75% d) 12.50% a) 15.75% b) 16.75% c) 13.75% d) 12.50% Return Probability 0.05 0.1 0.1 0.15 0.15 0.5 0.25 0.25

Explanation / Answer

Hi,

Please find the answer as follows:

Expected Return = .05*.1 + .1*.15 + .15*.5 + .25*.25 = 15.75%

Answer is 15.75%

Thanks.

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