Assume that you expect to hold a $40,000 investment for one year. It

Assume that you expect to hold a $40,000 investment for one year.

It is forecasted to have a year
end value of $42,000 with a 30% probability; a year end value of $48,000 with a 45% probability;
and a year end value of $60,000 with a 25% probability. What is the expected holding period return
for this investment?
A) 18% B) 50% C) 25% D) 23%

ANSWER

D