question archive Consider the following probability distribution of returns on stock XY2

Consider the following probability distribution of returns on stock XY2

Subject:FinancePrice:2.86 Bought3

Consider the following probability distribution of returns on stock XY2. What is the expected return of stock XYZ? (Enter your answer as a percentage rounded to 2 decimal places. For example, enter 8,43%. Instead of 0.0843) Return -896 Probability 0.20 0.40 0.40 1195 21%

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Calculating the Expected return of XYZ:-

Prob (P) Stock Return (P)*Stock Return
0.20 -8% -1.60%
0.40 11% 4.40%
0.40 21% 8.40%
1.00   11.20%

Expected return of XYZ is 11.20%%