Calculate expected rate of return

Assignment Help Financial Management

Reference no: EM131314031

You are considering investing in a project with the following possible outcomes:

Probability of Investment

States Occurrence Returns

State 1: Economic boom 18% 20%

State 2: Economic growth 42% 16%

State 3: Economic decline 40% 3%

Calculate the expected rate of return.

Reference no: EM131314031

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