Bloome Co.'s stock has a 25% chance of producing a 30% return, a 50% chance of producing a 12% return, and a 25% chance of producing a −18% return.What is the firm's expected rate of return?
A) 7.72%
B) 8.12%
C) 8.55%
D) 9.00%
E) 9.50%

Question

Quizplus · Accepted Answer

The Answer of Bloome Co.'s stock has a 25% chance of producing a 30% return, a 50% chance of producing a 12% return, and a 25% chance of producing a −18% return.What is the firm's expected rate of return?
A) 7.72%
B) 8.12%
C) 8.55%
D) 9.00%
E) 9.50%

Bloome Co'S Stock Has a 25% Chance of Producing a 30