The standard of living<span> in the United States is high by the standards that most economists use, and for many decades throughout the 20th century, the United States was recognized as having the highest standard of living in the world. </span>Per capita income<span> is high but also less evenly distributed than in most other developed countries; as a result, the United States fares particularly well in measures of average material well being that do not place weight on equality aspects.</span>
The expected return on an investment of $200 in a stock at the end of one year will be $11.4.
<h3>What is the expected return?</h3>
The total amount of return that is required by an investor over his class(s) of investments during a particular financial period, is known as the expected return.
The computation of expected return using the given formula will be,
![\rm Expected\ Return= 200\ x\ [(0.10\ x\ 0.01)+(0.40\ x\ 0.04)+(0.50\ x\ 0.08)]\\\\\rm Expected\ Return=200\ x\ 0.057\\\\\rm Expected\ Return=\$11.4](https://tex.z-dn.net/?f=%5Crm%20Expected%5C%20Return%3D%20200%5C%20x%5C%20%5B%280.10%5C%20x%5C%200.01%29%2B%280.40%5C%20x%5C%200.04%29%2B%280.50%5C%20x%5C%200.08%29%5D%5C%5C%5C%5C%5Crm%20Expected%5C%20Return%3D200%5C%20x%5C%200.057%5C%5C%5C%5C%5Crm%20Expected%5C%20Return%3D%5C%2411.4)
Hence, the expected return is as computed above.
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Answer:
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