An investor has $100,000 available for 1-year investment. The investor is weighing two options: a
Rate of Return Probability
0.3 0.20
0.25 0.20
0.20 0.30
0.15 0.10
0.10 0.10
0.05 0.10
a) If you chose option 2, what is the probability that the rate of return will be less than that of the first option? Show work.
Return is the benefit associated with an investment. Usually there are two types of return,
a. normal return in the form of dividend
b. capital gain
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