Question
RainNShine's stock has a 50% chance of producing a 20% return, a 30% chance of producing a 10% return, and a 20% chance of producing
RainNShine's stock has a 50% chance of producing a 20% return, a 30% chance of producing a 10% return, and a 20% chance of producing a -20% return. What is the firm's expected rate of return?
A.) 8.00%
B.) 9.00%
C.) 13.00%
D.) 22.00%
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Fundamentals Of Corporate Finance
Authors: Stephen A Ross, Randolph W Westerfield, Bradford D Jordan
7th Edition
0073134295, 9780073134291
