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Question
Solutions
Expert Solution
The option (3) is right option.
Explanation:
| Economic state | Probability | return | probability*return | |
| A | 35% | 20% | 7.00% | |
| B | 15% | 35% | 5.25% | |
| C | 25% | 6% | 1.50% | |
| D | 25% | 12% | 3.00% | |
| expected return =sum of (probability*return) | 16.75% | |||
| Options is 3 | 16.75% |
Hence, option "3" is right option.
The option 3 is right option.
Junaid answered 2 years agoRelated Solutions
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