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The probability distribution of returns of the Eddie Jello Corporation is presented below. What is the...

The probability distribution of returns of the Eddie Jello Corporation is presented below. What is the expected return?
Probability                          Return
         40%                               30%
         10%                             -30%
         30%                             -50%
         20%                                30%

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Answer #1

Expected return = (Probability * Return)

Expected return = (0.40 * 0.30) + [0.10 * (-0.30)] + [0.30 * (-0.50)] + (0.20 * 0.30)

Expected return = 0

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