A Bank Money Manager Estimates That the Bank Will Experience

Multiple Choice

A bank money manager estimates that the bank will experience a liquidity deficit of $400 million with a probability of 10 percent,a liquidity deficit of $900 million with a probability of 20 percent,a liquidity surplus of $600 million with a probability of 30 percent,and a liquidity surplus of $1,200 with a probability of 40 percent over the next month.What is this bank's expected liquidity deficit or surplus next month?

A) $880 million liquidity surplus
B) $440 million liquidity deficit
C) $440 million liquidity surplus
D) $880 million liquidity deficit
E) None of the options is correct