Macroeconomics 20th Edition by Campbell McConnell,Stanley Brue,Sean Flynn

Exercise 14

An investment has a 50 percent chance of generating a 10 percent return and a 50 percent chance of generating a 16 percent return. What is the investment's average expected rate of return?
a. 10 percent.
b. 11 percent.
c. 1.2 percent.
d. 13 percent.
e. 14 percent.
f. 15 percent.
g. 16 percent.