Assume that an investment is forecasted to produce the following returns: a 20%
ID: 2698983 • Letter: A
Question
Assume that an investment is forecasted to produce the following returns: a 20% probability of a 12% return; a 50% probability of a 16% return; and a 30% probability of a 19% return. What is the expected percentage return this investment will produce? Answer 33.3% 9.3% 16.1% 15.7% Assume that an investment is forecasted to produce the following returns: a 20% probability of a 12% return; a 50% probability of a 16% return; and a 30% probability of a 19% return. What is the expected percentage return this investment will produce? Assume that an investment is forecasted to produce the following returns: a 20% probability of a 12% return; a 50% probability of a 16% return; and a 30% probability of a 19% return. What is the expected percentage return this investment will produce? 33.3% 9.3% 16.1% 15.7% 33.3% 9.3% 16.1% 15.7%Explanation / Answer
0.2*12+0.5*16+0.3*19 = 16.1% ( final answer