You are considering investing in a project with the


You are considering investing in a project with the following possible outcomes:

                                    Probability of     Investment

States                             Occurrence          Returns

State 1: Economic boom    18%                 20%

State 2: Economic growth 42%                 16%

State 3: Economic decline 40%                  3%

Calculate the expected rate of return.

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Financial Management: You are considering investing in a project with the
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