What is the expected rate of return of the project


Problem

Another consulting company used by Target has just provided you with a different forecast distribution. The consultants predict a 25% chance of the project producing a 37% return, a 50% chance of producing a 12% return, and a 25% chance of producing a -18% return. What is the expected rate of return of the project given these new numbers?

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Financial Accounting: What is the expected rate of return of the project
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