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You are presented with a basic scenario analysis: (1) There is a 60% probability of a good state of the world where the HPR is
You are presented with a basic scenario analysis:
(1) There is a 60% probability of a good state of the world where the HPR is 10%
(2) There is a 40% probability of a good state of the world where the HPR is -5%
What is the expected return?
A. 2.5%
B. 4%
C. 5%
D. 6%
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