Given the following probability distribution, calculate the expected return of security XYZ.
$\begin{array}{cc}
\text { Security XYZ's }\
\underline {\text { Potential return }} & \underline {\text { Probability }} \
20 \% & 0.3 \
30 \% & 0.2 \
-40 \% & 0.1 \
50 \% & 0.1 \
10 \% & 0.3
\end{array}$
A)16 percent
B)22 percent
C)25 percent
D)18 percent

Question

Given the following probability distribution, calculate the expected return of security XYZ.
$\begin{array}{cc}
\text { Security XYZ's }\
\underline {\text { Potential return }} & \underline {\text { Probability }} \
20 \% & 0.3 \
30 \% & 0.2 \
-40 \% & 0.1 \
50 \% & 0.1 \
10 \% & 0.3
\end{array}$
A)16 percent
B)22 percent
C)25 percent 
D)18 percent

Quizplus · Accepted Answer

The Answer of Given the following probability distribution, calculate the expected return of security XYZ.
$\begin{array}{cc}
\text { Security XYZ's }\
\underline {\text { Potential return }} & \underline {\text { Probability }} \
20 \% & 0.3 \
30 \% & 0.2 \
-40 \% & 0.1 \
50 \% & 0.1 \
10 \% & 0.3
\end{array}$
A)16 percent
B)22 percent
C)25 percent 
D)18 percent

Given the Following Probability Distribution, Calculate the Expected Return of Security