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10. A venture investor is considering investing in a software venture opportunity. However, the rate of return to be realized next year is likely to

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10. A venture investor is considering investing in a software venture opportunity. However, the rate of return to be realized next year is likely to vary with the economic climate that actually occurs. Following are three possible economic outcomes, the probability that each one will occur, and the rate of retum projected for each outcome. Economic Climate Recession Normal Rapid growth Probability of Occurrence 0.25 0.50 0.25 Rate of Return -20.0% 15.0% 30.0% What is the expected rate of retum on this software venture at the end of the planning period

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