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Investment B earns the return of either -2% or 2% with equal chances. What is the...

Investment B earns the return of either -2% or 2% with equal chances. What is the expected return of Investment B? A. 0% B. 2% C. not sure D. 4%

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Answer #2

Ans is 0%

Working:-

-2%.50 + 2%.50 = 0%

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