Maxwell Inc.'s stock has a 50% chance of producing a 25% return, a 30% chance of producing a 10% return, and a 20% chance of producing a -28% return. What is the firm's expected rate of return?
A) 9.41%
B) 9.65%
C) 9.90%
D) 10.15%
E) 10.40%
Correct Answer:
Verified
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