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A firm's stock has a 25% chance of producing a 8% return, a 50% chance of producing a 12% return, and a 25% chance of
A firm's stock has a 25% chance of producing a 8% return, a 50% chance of producing a 12% return, and a 25% chance of producing a 16% return. What is the firm's expected rate of return?
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Introduction To Derivatives And Risk Management
Authors: Don M. Chance, Robert Brooks
10th Edition
130510496X, 978-1305104969
