Solved: Return distribution of the investment, Finance Basics

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Return distribution of the investment

Problem: The expected return for an investment is 30%. If we know the following information about the return distribution of the investment, what return will the investment produce if the economic climate is average?

Climate       Return   Probability

Poor        20%        0.30
Average   0.50
Exceptional   40%        0.20

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Finance Basics: Return distribution of the investment

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