Exhibit 713
Use the Information Below for the Following Problem(S)
a

Multiple Choice

Exhibit 7.13
Use the Information Below for the Following Problem(S)
A financial analyst covering Magnum Oil has determined the following four possible returns given four different states of the economy over the next period.
$$\begin{array} { c c } \text { Prabability } & \text { Return } \\\hline0 .10& - .20 \\0 .25 & - .05 \\0 .4 [ & 0 .15 \\0.25 & 0.30\end{array}$$
-Refer to Exhibit 7.13.Calculate the expected return for Magnum Oil.

A) 5.0
B) 10.3%
C) 13.7%
D) 17.5%
E) 20.0%