Question: If there is a 20% chance we will get a -1% return, a 30% chance of getting a 9% return, and a 50% chance of

 If there is a 20% chance we will get a -1%

If there is a 20% chance we will get a -1% return, a 30% chance of getting a 9% return, and a 50% chance of getting 13% return. What is the expected rate of return for the investment? Please round your answer to the fourth decimal. If your answer is 1.11%, then you should input "0.0111

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!