Answer 25: b) 9
Explanatory Solution:
Given:
S.NO. |
Return |
Probability |
1 |
-12 |
1/4 |
2 |
12 |
1/2 |
3 |
24 |
1/4 |
To Calculate:
The Expected Return.
Formula:
Expected Return = (p1×r1) + (p2×r2) + (p3×r3) ……...(pN×rN)
p= Probability of each return.
r= Return of respective probabilities.
On putting the values in the formula, we get:
Expected Return = (-12 × 1/4) + (12 × 1/2) + (24 × 1/4)
= (-3) + (6) + (6)
= -3+12
= 9
Expected Return = 9
Ans: b) 9
25. Based on the following information Return Probability. -12 1/4 12 1/2 24 1/4 Calculate the...
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