Multiple Choice
Calculate the expected return on a $6,000 bond that pays 6 percent of face value and whose price has a 30-percent chance of falling by $1,000 and a 70-percent chance of rising by $1,000.
A) $360
B) -$760
C) $650
D) $950
E) -$40
Correct Answer:
Verified
Correct Answer:
Verified
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