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Compute the expected rate of return

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Reference no: EM131863357

The local real estate market is heating up and you have purchased a residential dwelling for $100,000 that you plan to flip in one year. The following are possible future prices and the probabilities: $80,000 at 10%, $110,000 at 30%, $125,000 at 50%, and $130,000 at 10%.

Compute the Expected Rate of Return.

Reference no: EM131863357

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