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    Exam 4: Risk and Return
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    A Stock Which Has Possible Returns of 40% and -5
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A Stock Which Has Possible Returns of 40% and -5

Question 28

Question 28

Multiple Choice

A stock which has possible returns of 40% and -5% each with equal likelihood has an expected return of:


A) 10%.
B) 15.5%.
C) 17.5%.
D) 20%.

Correct Answer:

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