You Have an Investment Opportunity with the Following State-Contingent Payoffs

question 1

Multiple Choice

You have an investment opportunity with the following state-contingent payoffs:
-Refer to the information above. Assume this investment is purchased for its fair market value. What is its expected rate of return under the assumption of a worsened economy? Round your
Answer to the nearest tenth of a percent.

• A)-49.5%
• B)-46.7%
• C)-43.4%
• D)-56.6%

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