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Considering the world economic outlook for the coming year and estimates of sales and earning for the pharmaceutical industry, you expect the rate of return for Lauren Labs common stock to range between -20 percent and +30 percent with the following probabilities.
Probability Possible Returns
0.08 -0.20 0.13 -0.10 0.20 0.05 0.28 0.10 0.25 0.15 0.06 0.30
Compute the expected rate of return E(Ri) for Lauren Labs. Round your answer to four decimal places.
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The question belongs to economics, mainly to macroeconomics and it is describe the long term Federal government budget problems is discussed in the answer.
If an analyst predicts that the benefits of a two-year project would be $100,000 in the middle of the first year and $110,000 in the middle of the second year, the scrap value at the end of the project's life is expected to be $20,000 upon resale,..
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