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An investment will return ​$125​, ​$20 or ​$negative 60 ​(a loss) with probabilities of 0.3​, 0.3 and 0.4 respectively. The expected return from this investment is ​$ ___. ​(Enter your response as a real number rounded to two decimal​ places.)

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hyderali230

Answer:

The expected return from this investment is $19.5

Explanation:

Investment returns = A =      $125      $20    - $60

Probabilities = P =                   0.3        0.3       0.4

Expected Returns = A x P =   $37.5    $6      -$24

Net Total interest of Investment= $37.5 + $6 + ( - $24 )

Net Total interest of Investment= $37.5 + $6 - $24

Net Total interest of Investment= $19.5

The expected return from this investment is $19.5.

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