A project's expected return is 15%,which represents a 35% return in a boom and a 5% return in a stagnant economy.What is the probability of a boom if these are the only two economic states?
A) 18.33%
B) 25.00%
C) 33.33%
D) 50.00%

Name: A project's expected return is 15%,which represents a 35% return in a boom and a 5% return in a stagnant economy.What is the probability of a boom if these are the only two economic states? A) 18.33% B) 25.00% C) 33.33% D) 50.00%
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Question

Quizplus · Accepted Answer

15% = 35%(x) + 5%(1 − x); x = 33.33%

A Project's Expected Return Is 15%,which Represents a 35% Return