Assume That You Expect to Hold a $40,000 Investment for One

Multiple Choice

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) 50%
B) 25%
C) 23%
D) 18%