If the probability of a 20% return is 70% and the probability of a 3% loss is 30%,what is the expected return?
A) 13%
B) 10%
C) 12%
D) 17%
E) 15%

Name: If the probability of a 20% return is 70% and the probability of a 3% loss is 30%,what is the expected return? A) 13% B) 10% C) 12% D) 17% E) 15%
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Quizplus · Accepted Answer

Expected return = E(k) = Pr₁k₁ + Pr₂k₂ + ... + Pr_nk_n Expected return = (.70 × .20) + (.30 × -.03) = .13 or 13%

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