An asset has four possible rates of return, all equally likely: 6.3%, 1%, 17.5%, and 10.9%....

Question

Question

An asset has four possible rates of return, all equally likely: 6.3%, 1%, 17.5%, and 10.9%. What is the expected rate of return for this asset?

business finance

Answer 1

Answer #1

The solution to the given question is provided below for your reference

Expected rate of return=(6.3%+1%+17.5%+10.9%)/4=8.925%

Answer 2

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