An investment's possible payoffs are ?10 percent, 10 percent, and 30 percent. The probabilities that these payoffs will occur are 0.30, 0.40, and 0.30, respectively. What is the expected rate of return on the investment?

A. 10.0%
B. 9.5%
C. 15.0%
D. 12.5%
E. 13.0%


Answer: A

Business

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