Solving for the Expected return
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Question: J. Harper Inc.'s stock has a 50% chance of producing a 35% return, a 30% chance of producing a 10% return, and a 20% chance of producing a -28% return. What is Harper's expected return?
a. 14.16%
b. 14.53%
c. 14.90%
d. 15.27%
e. 15.65%
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Solution Summary
The expert solves for expected returns for Harper's.
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Hi,
There are 3 outcome scenarios in terms of returns.
Scenario 1: Probability = 50% or 0.5, Return = ...
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