If the probability of a 20% return is 70% and the probability of a 4% loss is 30%,what is the expected return to the nearest whole percentage?
A) 17%
B) 3%
C) 13%
D) 15%
E) 11%

Name: If the probability of a 20% return is 70% and the probability of a 4% loss is 30%,what is the expected return to the nearest whole percentage? A) 17% B) 3% C) 13% D) 15% E) 11%
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Quizplus · Accepted Answer

Expected return = E(k) = Pr₁k₁ + Pr₂k₂ + ... + Pr_nk_n E(k) = (.70 × .20) + (.30 × -.04) = .128 or 13%

If the Probability of a 20% Return Is 70% and the Probability