A risk free investment of 10000 will return 8 a risky 10000


A risk free investment of $10,000 will return 8%. A risky $10,000 investment has an 50% change of defaulting and returning on $3,000. What is the expected rate of return on the risky investment?

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Finance Basics: A risk free investment of 10000 will return 8 a risky 10000
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