Exhibit 1A.1
$$\begin{array} { c c }
\text { Probability } & \text { Rate of Return } \
\hline .15 & - .10 \
.15 & - .20 \
.35 & .00 \
.25 & .15 \
.10 & .15
\end{array}$$
-Refer to Exhibit 1A.1.The expected return from this investment is
A) -0.0752
B) -0.0040
C) 0.00
D) 0.0075
E) 0.4545

Question

Exhibit 1A.1
$$\begin{array} { c c } 
\text { Probability } & \text { Rate of Return } \
\hline .15 & - .10 \
.15 & - .20 \
.35 & .00 \
.25 & .15 \
.10 & .15
\end{array}$$
-Refer to Exhibit 1A.1.The expected return from this investment is
A) -0.0752
B) -0.0040
C) 0.00
D) 0.0075
E) 0.4545

Quizplus · Accepted Answer

E(R)= (-0.10)(0.15)+ (-0.20)(0.15)+ (0.00)(0.35)+ (0.15)(0.25)+ (0.15)(0.10)= 0.0075

Exhibit 1A -Refer to Exhibit 1A