Answer:
c. 9.90%
Explanation:
The formula to compute the expected rate of return is shown below:
Expected rate of return = (Probability 1 × Possible Returns 1) + (Probability 2 × Possible Returns 2) + (Probability 3 × Possible Returns 3)
= (0.50 × 25%) + (0.30 × 10%) + (0.20 × - 28%)
= 12.5% + 3% - 5.6%
= 9.90%
Simply we multiplied the probabilities with its return so that the expected rate of return can come.
Answer:
They helped pioneering the next generation of technology by their advertising and making it as comfortable as it is.
Explanation:
Answer:
IRR= 21.86%
Explanation:
Giving the following information:
Initial investment (PV)= $10,000
Cash flows (PMT)= $4,000 per year
Number or years (n)= 4
<u>It is extremely difficult to calculate the IRR using the formula. We will use the financial calculator.</u>
Function: CMPD
n= 4
I%= SOLVE = 21.86%
PV= 10,000
PMT= -4,000
IRR= 21.86%