An investment has a 50 percent chance of generating a 10 percent return and a 50 percent

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An investment has a 50 percent chance of generating a 10 percent return and a 50 percent chance of generating a 16 percent return. What is the investment’s average expected rate of return?

a. 10 percent

b. 11 percent

c. 12 percent

d. 13 percent

e. 14 percent

f. 15 percent g. 16 percent

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Macroeconomics

ISBN: 9781264112456

22nd Edition

Authors: Campbell McConnell, Stanley Brue, Sean Flynn

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Question Posted: Mar 02, 2024 01:00 PM

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An investment has a 50 percent chance of generating a 10 percent return and a 50 percent

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To find the average expected rate of return we can calcula...View the full answer

Macroeconomics

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