Investment X Has a 30% Chance of Achieving a 7

question 40

Multiple Choice

Investment X has a 30% chance of achieving a 7% rate of return, 45% chance of returning 13.5% and a 25% chance of returning 25%. What is the average expected rate of return for Investment X:

• A) 15.2%
• B) 17.4%
• C) 13.0%
• D) 14.4%

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Definitions:

Saturated

In chemistry, refers to a molecule containing no double or triple carbon-carbon bonds, fully "saturated" with hydrogen atoms. In everyday language, it often means completely filled or soaked.

Psychological Dimension

Refers to aspects of an individual's psychological functioning, including thoughts, emotions, behaviors, and mental processes.

Brightness

The perception of how luminous an object appears; the attribute of visual experience by which an area appears to emit more or less light.

Intensity

The degree of strength, force, or energy with which a phenomenon or a reaction occurs.