CFA Level I sample question

CFA Level I Probability Trees and Conditional Expectations question

Quantitative Methods / Probability Trees and Conditional Expectations

No-login practice

Probability Trees and Conditional Expectations sample question

Choose an answer before revealing the explanation, key takeaway, and answer-choice review.

Question 1 of 1Score 0/1

Moderate

Quantitative Methods

Probability Trees and Conditional Expectations

If the economy expands, a stock is expected to return 12%; if it contracts, it is expected to return -6%. Given a 70% probability of expansion, the expected return is closest to:

Report an issue

Question of the Week

Get one CFA Level I question by email

Receive a weekly practice question with answer-choice explanations and a short takeaway.