What is expected rate of return

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Reference no: EM132024556

1. An asset has a 10% chance of a -10% return, a 30% chance of a 5% return, and a 60% chance of a 15% return. What is its expected rate of return?

2. Stock X lies above the Security Market Line and Stock Y lies on the Security Market Line. Which of the following is true?

3. It is often assumed that the goal of the firm is to maximize profits for its owners, the shareholders. Is the firm’s goal of profit maximization always in society’s best interests? Be sure to defend your answer and cite your sources.

Reference no: EM132024556

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