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Assume That You Expect to Hold a $20,000 Investment for One

Question 52

Multiple Choice

Assume that you expect to hold a $20,000 investment for one year.It is forecasted to have a yearend value of $21,000 with a 30% probability; a yearend value of $24,000 with a 45% probability; and a yearend value of $30,000 with a 25% probability.What is the expected holding period return for this investment?


A) 50%
B) 25%
C) 23%
D) 18%

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