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7.You are considering buying stock. If the economy grows rapidly, you may earn 30 percent on the investment, while a declining economy could result in
7.You are considering buying stock. If the economy grows rapidly, you may earn 30 percent on the investment, while a declining economy could result in a 20 percent loss. Slow economic growth may generate a return of 6 percent. If the probability is 15 percent for rapid growth, 20 percent for a declining economy and 65 percent or slow growth, what is the expected return on this investment? 8. What is Capital Budgeting and list the 2 methods of selecting long-term investments
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