asked 151k views
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Taggart Inc.'s stock has a 50% chance of producing a 25% return, a 30% chance of producing a 10% return, and a 20% chance of producing a −28% return. What is the firm's expected rate of return?

asked
User Imilbaev
by
7.8k points

1 Answer

7 votes

Answer:

The firm's expected rate of return is 9.9%

Step-by-step explanation:

Please see attachment .

Taggart Inc.'s stock has a 50% chance of producing a 25% return, a 30% chance of producing-example-1
answered
User Rsteg
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8.2k points
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