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You Have the Opportunity of Making a $5,000 Investment

Question 45

Multiple Choice

You have the opportunity of making a $5,000 investment. The outcomes one year from now will be either $5,000 or $6,000, with an equal chance of either outcome occurring. What is the expected rate of return?


A) 10%
B) 15%
C) 20%
D) 25%

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