Question
Rand Corporation has a 0.2 probability of a return of 0.2, a 0.4probability of a rate of return of 0.08, and the remaining probability of
Rand Corporation has a 0.2 probability of a return of 0.2, a 0.4probability of a rate of return of 0.08, and the remaining probability of a -0.37 rate of return.What is the expected rate of return of Rand Corporation?
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Financial Markets and Institutions
Authors: Frederic S. Mishkin, Stanley G. Eakins
5th edition
321280299, 321280296, 978-0321280299
