Freedman Flowers' stock has a 50% chance of producing a 38% return, a 30% chance of producing a 38% return, and a 20% chance of producing a-30% return. What is the firm's expected rate of return? Select the correct answer. O24.25% Ob. 24.30% O24.40% Od. 24.35% Oe24.45%

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Freedman Flowers' stock has a 50% chance of producing a 38% return, a 30% chance of producing a 38% return, and a 20% chance of producing
a-30% return. What is the firm's expected rate of return?
Select the correct answer.
O.24.25%
Ob. 24.30%
O24.40%
Od. 24.35%
Oe24.45%
Transcribed Image Text:Freedman Flowers' stock has a 50% chance of producing a 38% return, a 30% chance of producing a 38% return, and a 20% chance of producing a-30% return. What is the firm's expected rate of return? Select the correct answer. O.24.25% Ob. 24.30% O24.40% Od. 24.35% Oe24.45%
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