Problemassume that an investment is forecasted to produce, Ask an Expert

Accounting

Problem:

Assume that an investment is forecasted to produce the following returns: a 20% probability of a 12% return; a 50% probability of a 16% return; and a 30% probability of a 19% return.

Required:

Question: What is the expected percentage return this investment will produce?

33.3%
9.3%
16.1%
15.7%

Note: Provide support for your rationale.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91170283

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