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Home / Questions / Everrest Inc.'s stock has a 53% chance of producing a 14.25% return, a 25% chance of produ...

Everrest Inc.'s stock has a 53% chance of producing a 14.25% return, a 25% chance of producing a 27.50% return, and a 22% chance of producing a –4.25% return. What is the firm's expected rate of retu

Everrest Inc.'s stock has a 53% chance of producing a 14.25% return, a 25% chance of producing a 27.50% return, and a 22% chance of producing a –4.25% return.  What is the firm's expected rate of return?

Round your answer to two decimal places. For example, if your answer is $345.6671 round as 345.67 and if your answer is .05718 or 5.7182% round as 5.72.
A. 15.52%
B. 11.74%
C. 13.49%
D. 13.09%
E. 14.98%
 

Sep 15 2020 View more View Less

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