What is the expected rate of return on this asset

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You are considering a $3,500 investment. The table below shows the possible outcomes in cash flow next year. What is the expected rate of return on this asset?

Probabilty                         Possible cash flor

0.3                                          $200

0.5                                         $415

0.2                                          875

A. 5.9%     B. 8.3%       C. 11.8%     D.   12.6%

Reference no: EM131333439

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