ABC Franchise's equity has a 60% chance of producing a 20% return, a 30% chance...
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ABC Franchise's equity has a 60% chance of producing a 20% return, a 30% chance of producing a 10% return, and a 10% chance of producing a -10% return. What is the firm's expected rate of return on the equity?
12 percent
14 percent
16 percent
18 percent
20 percent
ABC Franchise's equity has a 60% chance of producing a 20% return, a 30% chance of producing a 10% return, and a 10% chance of producing a -10% return. What is the firm's expected rate of return on the equity?
| 12 percent | ||
| 14 percent | ||
| 16 percent | ||
| 18 percent | ||
| 20 percent |
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