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Freedman Flowers' stock has a 50% chance of producing a 31% return, a 30% chance of producing a 17% return, and a 20% chance of

Freedman Flowers' stock has a 50% chance of producing a 31% return, a 30% chance of producing a 17% return, and a 20% chance of producing a 40% return. What is the firm's expected rate of return?

Select the correct answer.

a. 12.67%
b. 12.74%
c. 12.60%
d. 12.81%
e. 12.88%

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