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The prospects on the rate of return for a business project is as follows: Optimistic scenario is 25% return with 10% likelihood. Most likely scenario
The prospects on the rate of return for a business project is as follows: Optimistic scenario is 25% return with 10% likelihood. Most likely scenario is 12% return with 75% likelihood. Pessimistic scenario is 5% return with 15% likelihood. What is the expected return based on the three scenarios? 18% 10% 25% 12.25%
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