SOLUTION: If there is a 20% chance we will get a 16% return, a 30% chance of getting a 14% return, a 40% chance of getting a 12% return, and a 10% chance of getting an 8% return, what is the

SOLUTION: If there is a 20% chance we will get a 16% return, a 30% chance of getting a 14% return, a 40% chance of getting a 12% return, and a 10% chance of getting an 8% return, what is the

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Question 211326: If there is a 20% chance we will get a 16% return, a 30% chance of getting a 14% return, a 40% chance of getting a 12% return, and a 10% chance of getting an 8% return, what is the expected rate of return?
a) 12%
b) 13%
c) 14%
d) 15%
Answer by stanbon(75887) (Show Source): You can put this solution on YOUR website!
Multiply all the pairs and add the products.
Ans: 13%
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Cheers,
Stan H.
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