Use the Table for the Question(s)below

question 53

Multiple Choice

Use the table for the question(s) below.
Consider the following probability distribution of returns for Alpha Corporation:
-Suppose an investment is equally likely to have a 35% return or a -20% return.The expected return for this investment is closest to:

• A)7.5%.
• B)15%.
• C)5%.
• D)10%.

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Definitions:

Expert Demand Forecast

A projection or estimation of future demand for goods or services based on analyses conducted by experts in the field.

Forecasting Methods

Techniques utilized to predict future events or trends, including sales, economic conditions, and consumer behavior predictions.

Ratio Analysis

A quantitative analysis of information contained in a company’s financial statements, used to evaluate the overall financial condition and performance of a business.

Forecasting Method

A set of techniques used to predict future events or trends, such as market demand or sales, based on historical data and other information.