An investment has a 50 percent chance of generating a 10 percent return and a 50 percent

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An investment has a 50 percent chance of generating a 10 percent return and a 50 percent chance of generating a 16 percent return. What is the investment’s average expected rate of return?

a. 10 percent

b. 11 percent

c. 12 percent

d. 13 percent

e. 14 percent

f. 15 percent g. 16 percent

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Macroeconomics

ISBN: 9781264112456

22nd Edition

Authors: Campbell McConnell, Stanley Brue, Sean Flynn

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