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.