Multiple Choice
Given the following probability distribution for the possible returns of an asset, what is the expected return?\[\begin{array}{|c|c|}\hline\text{Return (25)} & \text{Probability} \\\hline10 & 0.2 \\8 & 0.5 \\4 & 0.3 \\\hline\end{array}\]A) 7.2\% B) 8.0\% C) 6.5\% D) 9.0\%
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