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27. A new business opportunity has a 70% chance of being worth $500,000 next year and a 30% chance of being worth $100,000. The appropriate

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27. A new business opportunity has a 70% chance of being worth $500,000 next year and a 30% chance of being worth $100,000. The appropriate expected rate of return is 10%. This new opportunity will be financed with a $150,000 loan. Assume that investors are risk neutral. Refer to the information above. What must the promised rate of return on the loan be? Round your answer to the nearest hundredth of a percent. A) 14.29% B) 28.57% 13.00% D) 10.00%

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