An investment has the following possible returns:   Return: 13%; Probability: 40%   Return: 8%; Probability: 50%   Return: 5%; Probability: 10%   What is the expected return on this investment?

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter8: Analysis Of Risk And Return
Section: Chapter Questions
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An investment has the following possible returns:

 

Return: 13%; Probability: 40%

 

Return: 8%; Probability: 50%

 

Return: 5%; Probability: 10%

 

What is the expected return on this investment?

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