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Potvin Potvin
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7 years ago
If Microsoft stockholders expect either a 25% return or a 2% return, each with a 50% probability, and Apple Computer shareholders expect a 10% return with certainty, what is the expected return from a portfolio comprised of equal amounts of stock from both firms?
A) 37.00%
B) 23.50%
C) 11.75%
D) 10.75%
E) 12.33%
Textbook 
Corporate Finance Online

Corporate Finance Online


Edition: 1st
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BlimpBlimp
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7 years ago
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Pol. Sci. Major
Minoring in Business
Columbia University Sophomore

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Potvin Author
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#2
7 years ago
I posted without any expectations, this surpassed my expectations
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