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

Question 6

Multiple Choice

Given the following probability distribution,calculate the expected return of security XYZ.
Security XYZ's
Potential returnProbability
20%0.3
30%0.2
-40%0.1
50%0.1
10%0.3


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

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