An investment's possible payoffs are −10 percent, 10 percent, and 30 percent. the probabilities that these payoffs will occur are 0.30, 0.40, and 0.30, respectively. what is the expected rate of return on the investment?

The expected rate of return on the investment is  10%

Explanation:

Expected rate of return is calculated as a weighted average of all possible payoff.  It is calculated by multiplying potential payoffs by the chances of  occurring and then adding these results.

In this case

Payoffs= −10 percent  Probabilities 0.30 (30%)

Payoffs= 10 percent  Probabilities 0.40 (40%)

Payoffs= 30 percent  Probabilities 0.30 (30%)

Expected rate of return= -10% x 30% + 10% x 40% + 30% x 30%

Expected rate of return= -0.03+0.04 + 0.09=0.1

Expected rate of return= 10%

1. c

2. b

3. a

4. c

5. a

6. b

7. c

8. c

9.b

10. d

just took it 100%

muslims control the north africa during the period of 1500 up

to 1800. they made a barrier to prevent further european exploration from

entering the africa from the north. however, the dutch ware still able to move

toward the interior with having south africa as one of the routes leading to

the east for trading with asia.