Use the Information Below for the Following Problem(S)
You have concluded that next year the following relationships are possible:
$$\begin{array} { l c c }
\text { Esanamic Status } & \text { Prabability } & \text { Rate of Return } \
\hline \text { Weak Economy } & .15 & - 5 \% \
\text { Static Ecanomy } & .60 & 5 \% \
\text { Strane Ecanamy } & 25 & 15 \%
\end{array}$$
-Refer to Exhibit 1.4.What is your expected rate of return [E(Rᵢ)] for next year?
A) 4.25%
B) 6.00%
C) 6.25%
D) 7.75%
E) 8.00%

Question

Use the Information Below for the Following Problem(S)
You have concluded that next year the following relationships are possible:
 $$\begin{array} { l c c } 
\text { Esanamic Status } & \text { Prabability } & \text { Rate of Return } \
\hline \text { Weak Economy } & .15 & - 5 \% \
\text { Static Ecanomy } & .60 & 5 \% \
\text { Strane Ecanamy } & 25 & 15 \%
\end{array}$$
-Refer to Exhibit 1.4.What is your expected rate of return [E(Rᵢ)] for next year?
A) 4.25%
B) 6.00%
C) 6.25%
D) 7.75%
E) 8.00%

Quizplus · Accepted Answer

E(Rᵢ)= (0.15)(-5)+ (0.60)(5)+ (0.25)(15)= 6%

Use the Information Below for the Following Problem(S) You Have

Use the Information Below for the Following Problem(S)
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