Over the last 10 years, the hurdle or discount rate for projects from the firm's research and

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Over the last 10 years, the hurdle or discount rate for projects from the firm's research and development division has been 10% twice, 15% three times, and 20% the rest of the time. There is no recognizable pattern. Calculate the probability distribution and the expected value for next year's discount rate.

Discount Rate
Depending upon the context, the discount rate has two different definitions and usages. First, the discount rate refers to the interest rate charged to the commercial banks and other financial institutions for the loans they take from the Federal...
Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...
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