Estimate the expected return for investors

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There is a probability of 0.42 that there will be extremely cold weather this coming Winter. If it does, we expect investors of Star & Bucks to achieve a return of 0.18. Else, investors may expect a lower return of 0.03. Can you estimate the expected return for investors of Star & Bucks? Type your answer as decimal (i.e. 0.052 and not 5.2%). Round your answer to the nearest four decimals if needed.

Reference no: EM133069853

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