Question
Your investment has a 5% chance of losing 12%, a 75% chance of earning a 10% rate of return, and a 20% chance of losing
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Your investment has a 5% chance of losing 12%, a 75% chance of earning a 10% rate of return, and a 20% chance of losing 6%. What is your expected return on this investment?
6.5%
11.4%
5.7%
4.3%
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Fundamentals Of Corporate Finance
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford
5th Edition
0135811600, 978-0135811603
