Compute the expected return after twelve months

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Reference no: EM13183734

A high-tech stock has the following potentials of either going up or down in next twelve months based on investment analysis of several stockbrokers.

Potential Associated

Increase Probability

/Decrease

Percentage

80% 0.40

50% 0.30

-20% 0.20

-60% 0.10

You, as a young enterprising engineer, are interested in investing in this stock. Compute the expected return after twelve months.

Reference no: EM13183734

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