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Your Investment Has a 20% Chance of Earning a 30

Question 67

Multiple Choice

Your investment has a 20% chance of earning a 30% rate of return,a 50% chance of earning a 10% rate of return and a 30% chance of losing 6%.What is your expected return on this investment?


A) 12.8%
B) 11.0%
C) 8.9%
D) 9.2%

Correct Answer:

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