Question
Your investment has a 20% chance of earning a return of 12%, a 20% chance of earning a 10% rate of return, and a 60%
Your investment has a 20% chance of earning a return of 12%, a 20% chance of earning a 10% rate of return, and a 60% chance of losing 2%. What is your expected return on this investment?
| 7.3% | ||
| 3.2% | ||
| 5.7% | ||
| 6.5% |
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Foundations of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen
16th edition
125927716X, 978-1259687969, 1259687961, 978-1259277160
