Estimated profits for an investor would depend on how successful a bailout bill would be in helping the U.S.economy.The estimated annual return for two different investment strategies are shown in the following table.If there is a 30% chance that the economy will decline, 50% that there will be no change and 20% chance that it will rebound, the expected value with perfect information is ________________________ .

A)-$250
B)-$450
C)$590
D)$700
E)$1290

Question

Estimated profits for an investor would depend on how successful a bailout bill would be in helping the U.S.economy.The estimated annual return for two different investment strategies are shown in the following table.If there is a 30% chance that the economy will decline, 50% that there will be no change and 20% chance that it will rebound, the expected value with perfect information is ________________________ .

A)-$250 
B)-$450 
C)$590 
D)$700 
E)$1290

Quizplus · Accepted Answer

The Answer of Estimated profits for an investor would depend on how successful a bailout bill would be in helping the U.S.economy.The estimated annual return for two different investment strategies are shown in the following table.If there is a 30% chance that the economy will decline, 50% that there will be no change and 20% chance that it will rebound, the expected value with perfect information is ________________________ .

A)-$250 
B)-$450 
C)$590 
D)$700 
E)$1290

Estimated Profits for an Investor Would Depend on How Successful