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What Is the Expected Return on a Stock That Has

Question 12

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What is the expected return on a stock that has a 15.0% probability of a 35.0% return, a 20.0% probability of a 25.0% return, a 50.0% probability of a 15.0% return, and a 15.0% probability of a -20.0% return?


A) 18.75%
B) 14.75%
C) 13.75%
D) 20.75%

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