36. CSO: 1A2e LOS: 1A2i
Stock X has the following probability distribution of expected future returns.
Expected
Probability Return
.10 -20%
.20 5%
.40 15%
.20 20%
.10 30%
The expected rate of return on stock X would be
a. 10%.
b. 12%.
c. 16%.
d. 19%.
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