Expected rate of return
Not what you're looking for? Search our solutions OR ask your own Custom question.
Kelly B. Stites, Inc., is considering an investment in one of two common stocks. Given the information that follows, which investment is better, based on risk (as measured by the standard deviation) and return?
Security A Security B
Probability Return Probability Return
.20 -2% .10 5%
.50 19% .30 7%
.30 25% .40 12%
.20 14%
https://brainmass.com/business/modified-internal-rate-of-return/expected-rate-return-common-stocks-13716
Solution Summary
Expected rate of return is shown.
$2.49