Question 8 (0.2 points) Consider the following probability distribution of returns on stock XYZ. What is...

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Answer 1

Answer #1

Expected return = ProbabilityX x ReturnX + ProbabilityY x ReturnY + ProbabilityZ x ReturnZ = 0.20 x -6% + 0.40 x 9% + 0.40 x 30% = 14.40%

Answer 2

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