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

Question

Muhammad Delgado

7 June, 12:57

+1

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Gunnar Mckenzie · Answer 1

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

Annual Return 0.2 0.4 0.3 0.1Probability 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