Use the Information Below for the Following Problem(S)
You Have

Multiple Choice

Use the Information Below for the Following Problem(S)
You have concluded that next year the following relationships are possible:
$$\begin{array} { l c c } \text { Esanamic Status } & \text { Prabability } & \text { Rate of Return } \\\hline \text { Weak Economy } & .15 & - 5 \% \\\text { Static Ecanomy } & .60 & 5 \% \\\text { Strane Ecanamy } & 25 & 15 \%\end{array}$$
-Refer to Exhibit 1.4.What is your expected rate of return [E(Rᵢ) ] for next year?

A) 4.25%
B) 6.00%
C) 6.25%
D) 7.75%
E) 8.00%