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Question 8 (0.2 points) Consider the following probability distribution of returns on stock XYZ. What is the expected return

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Solution :-

Probability(A) Return(B) Expected return(A x B)
0.20 -3% -0.60%
0.40 12% 4.80%
0.40 27% 10.80%
Total 15.00%

Thus, expected return of stock XYZ is 15.00%

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