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10. You are considering investing in a project with the following possible outcomes: Probability of Investment States Occurrence Returns State 1: Economic boom 15% 16%
10. You are considering investing in a project with the following possible outcomes: Probability of Investment States Occurrence Returns State 1: Economic boom 15% 16% State 2: Economic growth 45% 12% 5% State 3: Economic decline 25% 15% State 4: Depression -5% What is the expected rate of return for this investment? 9.8% 7.0% 8.3% 6.6% 4
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