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Preston Inc

question 81

Multiple Choice

Preston Inc.'s stock has a 25% chance of producing a 30% return, a 50% chance of producing a 12% return, and a 25% chance of producing a -18% return. What is the firm's expected rate of return?

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Definitions:

Thermocouple

A type of sensor used to measure temperature, consisting of two different conductors that produce a voltage in response to a temperature change.

DC Voltage

Direct current voltage, where the flow of electric charge is in one direction.

AC Voltage

Alternating Current voltage, where the flow of electric charge periodically reverses direction, commonly used in power supply systems worldwide.

Encoder

A rotary device that transmits position information; a device that transmits a fixed number of pulses for each revolution.

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