Question: If there is a 20% chance we will get a 16% return, a 30% chance of getting a l4% return, a 40% chance of getting
If there is a 20% chance we will get a 16% return, a 30% chance of getting a l4% 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? 12% 13% 14% 15 % Spartan Sofas, Inc. is selling for $50.00 per share today. In one year, Spartan will be selling for $48.00 per share, and the dividend for the year will be $3.00. What is the cash return on Spartan stock? 0% 2% 6% 10% What is the standard deviation of an investment that has the following expected scenario? 18% probability of a recession, 2.0% return; 65% probability of a moderate economy, 9.5% return: 17% probability of a strong economy, 14.2% return. 3.68% 1.23% 8.47% 6.66% You are considering investing in a firm that has the following possible outcomes: Economic boom: probability of 25%; return of 25% Economic growth: probability of 60%; return of 15% Economic decline probability of 15%; return of -5% What is the expected rate of return on the investment? 15.0% 11.7% 14.5% 25.0%
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