Question
ABC Company's stock has a 25% chance of producing a 17% return, a 50% chance of producing a 12% return, and a 25% chance of
ABC Company's stock has a 25% chance of producing a 17% return, a 50% chance of producing a 12% return, and a 25% chance of producing a -18% return. What is the company's expected rate of return?
| 1. | 4.72% | |
| 2. | 6.27% | |
| 3. | 5.75% | |
| 4. | 5.81% | |
| 5. | 4.43% |
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Foundations Of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen
18th Edition
126409762X, 9781264097623
