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Questions 5-7 please and thanks 5. Your investment has a 20% chance of earning a 30% rate of return, a 50% chance of earning a
Questions 5-7 please and thanks
5. Your investment has a 20% chance of earning a 30% rate of return, a 50% chance of earning a 10% rate of return, and a 30% chance of losing 6%. What is your expected return on this investment? A. 12.8% B. 11% C. 8.5% D. 2.9% E. None of the above 6. Both investors and gamblers take on risk. The difference between an investor and a gambler is that an investor A. is normally risk neutral B. requires a risk premium to take on the risk C. knows he or she will not lose money D. knows the outcomes at the beginning of the holding period E. All of the above 7. The formula E(Tp)=rt is used to calculate the Op A. Real rate of return B. Treynor measure C. Coefficient of variation D. Sharpe measure E. None of the aboveStep by Step Solution
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