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ABC Franchise's equity has a 60% chance of producing a 20% return, a 30% chance...

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Finance

  1. ABC Franchise's equity has a 60% chance of producing a 20% return, a 30% chance of producing a 10% return, and a 10% chance of producing a -10% return. What is the firm's expected rate of return on the equity?

    12 percent

    14 percent

    16 percent

    18 percent

    20 percent

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