Estimated Profits for an Investor Would Depend on How Successful

Multiple Choice

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