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If a Project's Expected Return Is 15 Percent, Which Represents

Question 110

Multiple Choice

If a project's expected return is 15 percent, which represents a 35 percent return in a booming economy and a 5 percent return in a stagnant economy, what is the probability of a booming economy?


A) 18.33 percent
B) 25.00 percent
C) 33.33 percent
D) 50.00 percent 15% = 35 %(X) + 5%(1 - X)
10% = 30%X

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