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Dan Mullen's Coaching Carousel, Inc.'s stock has a 20% chance of producing a 15% return, a 50% chance of producing a 5% return, and a
Dan Mullen's Coaching Carousel, Inc.'s stock has a 20% chance of producing a 15% return, a 50% chance of producing a 5% return, and a 30% chance of producing a -10% return. What is the firm's expected rate of return?If the firm's required rate of return were 10%, would his company be a good investment?Why or why not?
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