If an Investment Is Equally Likely to Return 10 Percent

question 348

Multiple Choice

If an investment is equally likely to return 10 percent per year or 15 percent a year, then its average expected rate of return is

• A) 10.5 percent.
• B) 11.0 percent.
• C) 11.5 percent.
• D) 12.5 percent.

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Definitions:

Up And Back

A technique often used for administering ear drops or examining the ear, where the ear is pulled upward and backward to straighten the ear canal.

Macular Degeneration

A medical condition that results in blurred or no vision in the center of the visual field due to damage to the macula of the retina.

Central Vision

The part of a field of vision where one can see clearly and sharply; it's crucial for reading, driving, and any activity requiring focused vision.

Anterior Cavity

The front part of the body's cavity, which includes structures in the chest and abdomen.