Question
20. Suppose an investment has three possible outcomes with the following probabilities and returns: 1. 10% chance of losing 7% 2. 70% chance of gaining
20.
Suppose an investment has three possible outcomes with the following probabilities and returns: 1. 10% chance of losing 7% 2. 70% chance of gaining 9% 3. 20% chance of gaining 17%
What is the investment's expected rate of return?
Question 20 options:
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-3.60%
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10.40%
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6.33%
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2.20%
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9.00%
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Fundamentals Of Futures And Options Markets
Authors: John C. Hull
4th Edition
0130176028, 9780130176028
