A stock with a 20% probability of a -15% return, a 50% probability of a 10% return, and a 30% probability of a 35% return has an expected return of 12.5%.

Authors

• Person: Not available Organization: Pressbooks
  Chapter 8 – Risk and Return – Fundamentals of Finance

Sources

• Chapter 8 – Risk and Return – Fundamentals of Finance pressbooks.pub Pressbooks via serper

Referenced by nodes (2)

• stocks concept
• expected return concept