You are interested in buying a stock that has a price of $22. You have projected that next year there is: a 10% probability the stock will equal $1, a 20% probability the stock will equal $18, a 30% probability the stock will equal $23, a 30% probability the stock will equal $30, and a 10% probability the stock will equal $50.
What is the expected return on the stock if you buy today and sell next year?