b. no solutions
c. two solutions
d. one solution
20%...0.4
30% ...0.3
35% ...0.1
The table gives the probability distribution of the annual rate of return on the stock of MNP Company, Inc.
The expected value of the rate of return is ______%.
Answer: The expected value of the rate of return is 23.5%.
Step-by-step explanation:
Since we have given that
Annual Return Probability
15% 0.2
20% 0.4
30% 0.3
35% 0.1
We need to find the expected value of the rate of return:
As we know the formula for "Expected value ":
So, it becomes,
Hence, the expected value of the rate of return is 23.5%.