Dothan Inc.'s stock has a 25% chance of producing a 16% return,a 50% chance of producing a 12% return,and a 25% chance of producing a -18% return.What is the firm's expected rate of return? Do not round your intermediate calculations.
A) 4.51%
B) 5.50%
C) 4.68%
D) 4.29%
E) 6.38%
Correct Answer:
Verified
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