You are considering a 3500 investment the table below shows
You are considering a $3,500 investment. The table below shows the possible outcomes in cash flow next year. What is the expected rate of return on this asset?
Probabilty Possible cash flor
0.3 $200
0.5 $415
0.2 875
A. 5.9% B. 8.3% C. 11.8% D. 12.6%
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