Exhibit 716
Use the Information Below for the Following Problem(S)
Based

Multiple Choice

Exhibit 7.16
Use the Information Below for the Following Problem(S)
Based on the economic outlook for the industry a financial analyst covering Top Choice Corporation has determined the following three possible returns given three different states of the economy over the next period.
$$\begin{array} { c c } \text { Prabability } & \text { Return } \\\hline 0.25 & 0 .02 \\0.50 & 0.14 \\0.25 & 0.30\end{array}$$
-Refer to Exhibit 7.16.What is the expected return for Top Choice Corporation?

A) 5.2%
B) 10.4%
C) 13.7%
D) 15.0%
E) 17.6%