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Weighted average of probabilities is classified as

A. average rate of return

B. expected rate of return

C. past rate of return

D. weighted rate of return

Answer: Option B

Solution(By Examveda Team)

Weighted average of probabilities is classified as expected rate of return. The expected return on a financial investment is the expected value of its return. It is a measure of the center of the distribution of the random variable that is the return.

This Question Belongs to Commerce >> Financial Management

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