Answered: 12. Weighted average of probabilities…

12. Weighted average of probabilities is classified as A. average rate of return B. expected rate of return C. past rate of return D. weighted rate of return

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter17: Making Decisions With Uncertainty

Section: Chapter Questions

Problem 17.2IP

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Question

12. Weighted average of probabilities is classified as A. average rate of return B. expected rate of return C. past rate of return D. weighted rate of return

Definition Definition Percentage gain or loss from a specific investment over time. The rate of return is the difference between the closing and initial values of an investment divided by the initial value of the investment. The closing value includes any intermediate cash flows such as dividends or interest amounts.

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