A real estate investment is expected to earn 18 percent in a recession, 10 percent...
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Finance
A real estate investment is expected to earn 18 percent in a recession, 10 percent in a normal economy, and lose 21 percent in a booming economy. The probability of a boom is 22 percent while the probability of a normal economy is 75 percent. What is the expected rate of return on this investment?
Multiple Choice
3.42%
2.15%
8.67%
10.83%
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