Taggart Inc.'s stock has a 50% chance of producing a 31% return, a 30% chance of producing

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Taggart Inc.'s stock has a 50% chance of producing a 31% return, a 30% chance of producing a 10% return, and a 20% chance of producing a -20% return. What is the firm's expected rate of return? Do not round your intermediate calculations.

a. 14.50%

b. 18,50%

c. 20.33%

d. 16.50%

e. 21,00%

Related Book For answer-question

Contemporary Financial Management

ISBN: 9780324289114

10th Edition

Authors: James R Mcguigan, R Charles Moyer, William J Kretlow

Posted Date: Jun 12, 2022 07:03 AM

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Taggart Inc.'s stock has a 50% chance of producing a 31% return, a 30% chance of producing

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Contemporary Financial Management

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