Take a Test - Oshayne Whittingham t72873572& centerwinsyes Goo ork-i| Secure l h

Question

Take a Test - Oshayne Whittingham t72873572& centerwinsyes Goo ork-i| Secure l https://www.mathxl.com/Student/PlayerTest.aspx?testld: 1 he Principles of Business Finance Test:Exam 2 Time R e consi bility of This Question: 1 pt Occur 1 of 41 (0 complete) 1: Econd You are considering investing in a project with the following possible outcomes Probability of Occurrence 15% Investment Returns - 16% 12% 5% -5% late the Státes State 1 Economic boom State 2 Economic growth State 3 Economic decline State 4 Depression 18.729( 45% 25% 2.189 C735Calculate the expected rate of return for this investment 3.50, O A. 9.8% B. 70% °C, 83% OD, 63% O. stateo1 ProbabiliO or state of Rates of Keturn in

Explanation / Answer

Answer :- (c)8.3 %

Explanation :- wa*ra+wb*rb+wc*rc+wd*rd

= 0.15*16+0.45*12+0.25*5+0.15*(-5)

= 8.3%

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