What is the expected rate of return of the asset

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Question: An asset has a 15% chance of a -10% return, a 25% chance of a 0% return, a 25% chance of a 5% returns, and a 35% chance of a 20% return. What is the expected rate of return of this asset?

3.75%
4.25%
5.30%
6.75%
7.95%

Reference no: EM131935687

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