What is expected return after one year

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You loan a friend $5,000. There is a 15% chance your friend will pay you a 3% return, a 40% chance he will pay you a 2% return and a 45% chance he will pay you only a 1% return.

Problem 1: What is your expected return after one year?

a.) 1.70%
b.) 2.05%
c.) 1.80%
d.) 2.20%

 

Reference no: EM132894379

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