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Rickos Rickos
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6 years ago
You are considering investing in a firm that has the following possible outcomes:

    Economic boom: probability of 25%; return of 25%
   Economic growth: probability of 60%; return of 15%
   Economic decline: probability of 15%; return of -5%

What is the expected rate of return on the investment?
A) 15.0%
B) 11.7%
C) 14.5%
D) 25.0%
Textbook 
Financial Management: Principles and Applications

Financial Management: Principles and Applications


Edition: 13th
Authors:
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David_hessDavid_hess
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6 years ago
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Rickos Author
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6 years ago
Good timing, thanks!
carston
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Yesterday
This calls for a celebration Person Raising Both Hands in Celebration
bioc
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2 hours ago
You make an excellent tutor!
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