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If you believe you have a 60% chance of doubling your money, a 30% chance of gaining 15%, and a 10% chance of losing your entire investment, what is your expected return

Respuesta :

Answer:

the expected return is 54.50%

Explanation:

The computation of expected return is shown below:

= Probability × weightage

= 60% × 100% + 30% × 15% + 10% × -100%

= 60% + 4.5% - 10%

= 54.50%

hence, the expected return is 54.50%

We simply applied the above formula so that the correct value could come

And, the same is to be considered

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