How, if at all, does your answer change if the investments cost $ 500,000? Why?
Refer to E11.1.
Each of the following three investments costs $ 400,000. Calculate the expected rates of return on these investments. Each possible outcome will occur at the end of one year.

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Possible OutcomeProbability Investment A $40,000 03 60,000 Investment B 0.1 55,000 60,000 65,000 $80,000 70,000 80,000 02 04 Investment C