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Question
Darren has the option of investing in either Stock A or Stock B. There is a 45 percent chance that the return on Stock A will be 25 percent, a 25 percent chance it will be 14 percent, and a 30 percent chance it will be 4 percent. There is a 45 percent chance that the return on Stock B will be 30 percent, a 25 percent chance it will be 9 percent, and a 30 percent chance it will be2 percent. What is the expected rates of return on Stock A and Stock B?
a. 13.65%; 12.85%
b. 14.75%; 13.75%
c. 15.95%; 16.35%
d. 16.80%; 11.45%
e. 14.33%; 13.67%
Answer
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Related questions
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