What is the expected rate of return for stock

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Reference no: EM131901662

Darren has the option of investing in either Stock A or Stock B. The probability of the return of Stock A being 25% is 0.45, 14% is 0.25, and 4% is 0.30. The probability of the return of Stock B being 30% is 0.30, 9% is 0.25, and 2% is 0.30. Given the probability distributions for the two investments, what is the expected rate of return for Stock A and Stock B?? a. ?16.80%; 11.45% b. ?15.95%; 11.85% c. ?14.75%; 13.75% d. ?13.65%; 12.85% e. ?17.82%; 11.95%

Reference no: EM131901662

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