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A Project's Expected Return Is 15%, Which Represents a 35

Question 87

Multiple Choice

A project's expected return is 15%, which represents a 35% return in a booming economy and a 5% return in a stagnant economy. What is the probability of a booming economy occurring if these are the only two economic states?


A) 18.33%
B) 25.00%
C) 33.33%
D) 50.00%

Correct Answer:

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