Considering a potential investment

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You are considering a potential investment, and you believe there are 4 possible outcomes, which are Excellent, Good, Poor, and Terrible. You have done your analysis and you believe that each has a 25% probability of happening for this investment. However, each possibility leads you to project a different return, as follows: Excellent 30%, Good 15%, Poor 0%, Terrible -1%. What would you estimate your Expected Return to be for this investment?

Reference no: EM132384798

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