Multiple Choice
Next year, a cash flow is expected to be $1,000.00 (40% probability) or $2,000.00 (60% probability) . The following year, the same cash flow possibilities exist in the same manner as the previous year. What is the probability of the cash flow in the second year being $2,000.00?
A) 36%
B) 60%
C) 24%
D) 16%
Correct Answer:
Verified
Correct Answer:
Verified
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