Homework Answers
Expected Ret = Sum [ Prob * Ret ]
| Prob | Ret | Prob * Ret |
| 0.2 | 45% | 9.00% |
| 0.3 | 25% | 7.50% |
| 0.4 | 13% | 5.20% |
| 0.1 | 3% | 0.30% |
| Expected Ret | 22.00% | |
OPtion D is correct.
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