The expected rate of return

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Expected Return XYZ College is evaluating making an investment with a portion of the principle from its endowment fund. Calculate the investment's expected return if there's a 40% probability of a 10% return, a 30% probability of a 9% return, and a 15% probability of either a 6% or a 15% return. Be sure to express your answer in narrative form, i.e. "The Expected Rate of Return is," prior to showing your process to arrive at that answer.

Reference no: EM13953577

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