What is the expected return on investment

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Reference no: EM133716418

Question: You are a financial analyst assessing the potential return on investment (ROI) for a new technology startup over the next year. Based on your analysis and market conditions, you estimate that the ROI could vary continuously between -10% and 30%. Assuming all outcomes within this range are equally likely, you decide to model the ROI using a continuous uniform distribution.

1. What is the expected return on investment?

2. What is the probability that the ROI will be negative?

Reference no: EM133716418

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