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Bloome Co'S Stock Has a 25% Chance of Producing a 30

Question 3

Multiple Choice

Bloome Co.'s stock has a 25% chance of producing a 30% return,a 50% chance of producing a 12% return,and a 25% chance of producing a -18% return.What is the firm's expected rate of return?


A) 7.72%
B) 8.12%
C) 8.55%
D) 9.00%
E) 9.50%

Correct Answer:

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