Answered

Get the answers you need at Westonci.ca, where our expert community is dedicated to providing you with accurate information. Experience the convenience of getting reliable answers to your questions from a vast network of knowledgeable experts. Get immediate and reliable solutions to your questions from a community of experienced professionals on our platform.

You invest $200 in a stock that has a 10% chance of a 1% return, a 40% chance of a 4% return and a 50% chance of an 8% return. what is your expected return after one year?

Sagot :

chilljain33

The expected return on an investment of $200 in a stock at the end of one year will be $11.4.

What is the expected return?

The total amount of return that is required by an investor over his class(s) of investments during a particular financial period, is known as the expected return.

The computation of expected return using the given formula will be,

[tex]\rm Expected\ Return= 200\ x\ [(0.10\ x\ 0.01)+(0.40\ x\ 0.04)+(0.50\ x\ 0.08)]\\\\\rm Expected\ Return=200\ x\ 0.057\\\\\rm Expected\ Return=\$11.4[/tex]

Hence, the expected return is as computed above.

Learn more about expected return here:

https://brainly.com/question/17152687

#SPJ1

We appreciate your visit. Hopefully, the answers you found were beneficial. Don't hesitate to come back for more information. Thanks for using our platform. We aim to provide accurate and up-to-date answers to all your queries. Come back soon. Stay curious and keep coming back to Westonci.ca for answers to all your burning questions.