The firm has estimated the three different returns under different states of economy. The probabilities of each state and the returns are provided in the table below. What is the expected return for the firm?
$$\begin{array} { | l | l | l | l | }
\hline \text { State of Economy } & \text { Recession } & \text { Normal } & \text { Boom } \
\hline \text { Probability } & 0.2 & 0.7 & 0.1 \
\hline \text { Return } & - 100,000 & 200,000 & 500,000 \
\hline
\end{array}$$
A) 110,000
B) 130,000
C) 150,000
D) 170,000

Question

The firm has estimated the three different returns under different states of economy. The probabilities of each state and the returns are provided in the table below. What is the expected return for the firm?
$$\begin{array} { | l | l | l | l | } 
\hline \text { State of Economy } & \text { Recession } & \text { Normal } & \text { Boom } \
\hline \text { Probability } & 0.2 & 0.7 & 0.1 \
\hline \text { Return } & - 100,000 & 200,000 & 500,000 \
\hline
\end{array}$$
A) 110,000
B) 130,000
C) 150,000
D) 170,000

Quizplus · Accepted Answer

The Answer of The firm has estimated the three different returns under different states of economy. The probabilities of each state and the returns are provided in the table below. What is the expected return for the firm?
$$\begin{array} { | l | l | l | l | } 
\hline \text { State of Economy } & \text { Recession } & \text { Normal } & \text { Boom } \
\hline \text { Probability } & 0.2 & 0.7 & 0.1 \
\hline \text { Return } & - 100,000 & 200,000 & 500,000 \
\hline
\end{array}$$
A) 110,000
B) 130,000
C) 150,000
D) 170,000

The Firm Has Estimated the Three Different Returns Under Different