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Nunu: Preston Inc.'s stock has a 25% chance of producing a 30% return, a 50% chance of producing a 11% return, and a 25% chance
Nunu:
Preston Inc.'s stock has a 25% chance of producing a 30% return, a 50% chance of producing a 11% return, and a 25% chance of producing a -22% return. What is the firm's expected rate of return?
Group of answer choices
7.50%
6.50%
11.00%
8.50%
10.50%
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