Given the Following Probability Distribution, Calculate the Expected Return of Security

question 43

Essay

Given the following probability distribution, calculate the expected return of security XYZ.
$\begin{array}{cc}\text { Security XYZ's }\\\underline {\text { Potential return }} & \underline {\text { Probability }} \\20 \% & 0.3 \\30 \% & 0.2 \\-40 \% & 0.1 \\50 \% & 0.1 \\10 \% & 0.3\end{array}$
A)16 percent
B)22 percent
C)25 percent
D)18 percent

• A)16 percent
• B)22 percent
• C)25 percent
• D)18 percent