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The returns from an investment are assumed to conform to the fixed rate model with the distribution of rates as specified below: 0.01, with probability

The returns from an investment are assumed to conform to the fixed rate model with the distribution of rates as specified below: 0.01, with probability 0.2 ik = {0.02, with probability 0.5 0.03, with probability 0.3. Calculate the expected value at the end of 5 years of an initial investment of $10,000. So

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