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Assume That an Investment Is Forecasted to Produce the Following

Question 149

Multiple Choice

Assume that an investment is forecasted to produce the following returns: a 10% probability of a $1,400 return; a 50% probability of a $6,600 return; and a 40% probability of a $1,500 return.What is the expected amount of return this investment will produce?


A) $4,040
B) $7,640
C) $12140
D) $1,540

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