What is the expected return of the following investment? Probability Payoff 0.3 30.0% 0.2 10.0 0.5 -2.0
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What is the expected return of the following investment?
Probability Payoff
0.3 30.0%
0.2 10.0
0.5 -2.0
Expected ReturnThe expected return is the profit or loss an investor anticipates on an investment that has known or anticipated rates of return (RoR). It is calculated by multiplying potential outcomes by the chances of them occurring and then totaling these...
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Probability distribution is referred to as listing all the ...View the full answer
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