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
You might also like to view...
Significant differences exist in terms on financial statements around the world. For example, another name for what we know as Contingent Liabilities in the U.S. is:
a. Share Capital b. Capital Reserves c. Provisions for Other Risks d. Deferred Income
How can a marketer overcome the negative effects of commoditization?
A) convince target consumers that the firm's products are as good as those of competitors B) convince target consumers that price is irrelevant in determining quality C) convince target consumers that the firm's products are different from those of competitors D) convince target customers that buying the highest-priced product is no guarantee of quality E) convince target customers that all the products in the market are equivalent
Most French organizations tend to be ________.
A. highly decentralized and have lose structures B. highly decentralized and have rigid structures C. highly centralized and have rigid structures D. highly centralized and have lose structures
The average amount of time that a network is working properly is its
a. MTTR b. MTBF c. CSMA d. none of the above