Question

Annual Return 0.2 0.4 0.3 0.1

Probability 15% 20% 30% 35% The table gives the probability distribution of the annual rate of return on the stock of MNP Company, Inc. The expected value of the rate of return is %. NextReset

Answer 1

The expected value, in percent, is 0.2*15+0.4*20+0.3*30+0.1*35=23.5%.