Question: 5. Weighted average Thus far, we have assumed that each value has equal weight, or importance, but that is not always the case. Suppose a

 5. Weighted average Thus far, we have assumed that each value

5. Weighted average Thus far, we have assumed that each value has equal weight, or importance, but that is not always the case. Suppose a stock is expected to have a return of either 2%, 8%, or 35%. The simple, arithmetic average is

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