Bloome Co.'s stock has a 25% chance of producing a 30% 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?
A) 7.72%
B) 8.12%
C) 8.55%
D) 9.00%
E) 9.50%
Correct Answer:
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