Q812
Weighted average of probabilities is classified as
A.
average rate of return
B.
expected rate of return
AnswerC.
past rate of return
D.
weighted rate of return
Answer: Option B
Solution
Answer: Option B
Solution:
Weighted average of probabilities is classified as expected rate of return. The expected return on a financial investment is the expected value of its return. It is a measure of the center of the distribution of the random variable that is the return.