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    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%

    © BrainMass Inc. brainmass.com June 3, 2020, 10:32 pm ad1c9bdddf
    https://brainmass.com/business/finance/solving-expected-return-236543

    Solution Preview

    Hi,

    There are 3 outcome scenarios in terms of returns.

    Scenario 1: Probability = 50% or 0.5, Return = ...

    Solution Summary

    The expert solves for expected returns for Harper's.

    $2.19

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