What Is the Rate of Return on an Investment of $124,090

question 149

Multiple Choice

What is the rate of return on an investment of $124,090 if the company expects to receive $10,000 per year for the next 30 years?

• A) 7 percent
• B) 4 percent
• C) 1 percent
• D) 0 percent

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Definitions:

Prior Probabilities

The likelihood of events or outcomes based on existing knowledge before new evidence is taken into account.

Sample Information

Data or observations collected from a portion of a population, used to make inferences about the whole population.

States Of Nature

Alternative conditions or scenarios in decision-making, reflecting different possible outcomes that are generally outside the control of the decision maker, with their uncertainties critical in risk analysis and management.

Expected Opportunity Loss

The anticipated loss in value resulting from not choosing the best action or decision under uncertainty.