<h3>Answer:
$11 gain</h3>
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Explanation:
Focus on the first row only. We won't worry about the other stocks.
Convert each of the percentages to decimal form
- 40% = 0.40
- 15% = 0.15
- 45% = 0.45
Then multiply those decimal values with their respective gains or losses.
Use a negative sign to indicate losses.
- 0.40*(-25) = -10
- 0.15*5 = 0.75
- 0.45*45 = 20.25
The last step is to add up each of the results to get the expected value.
-10+0.75+20.25 = 11
The result is positive, so it's a gain rather than a loss.
On average, we expect an $11 gain for stock ABC.
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Side note: Thank you for making the screenshot much more clear.
