Question 1073252
.3 * 20% + .5 * 10% + .1 * 0% + .1 * -10% = 10%


the expected percentage increase is 10%.


you can also calculate the expected percent increase as follows:


assume the value of the investment is x.


30% of the time it will increase 20% to become 1.2 * x
50% of the time it will increase 10% to become 1.1 * x
10% of the time it will increase 0% to become 1.0 * x
10% of the time it will decrease 10% to become .9 * x


expected value of the investment becomes:


.3 * (1.2 * x) + .5 * (1.1 * x) + .1 * (1.0 * x) + .1 * (.9 * x)


you will get expected value = 1.1 * x.


the percent increase in value is 1.1 * x / 1.0 * x = .1.


multiply that by 100 and it becomes 10%.