A Manager Is Attempting to Assess the Probability of a Recession

Multiple Choice

A manager is attempting to assess the probability of a recession ending in the next six months and its impact on expected profitability.The manager believes there is a 33 percent chance the recession will end in six months and profits will return to $100 million.However,there is a 67 percent chance the recession will not end in six months,resulting in a $7 million loss.The expected profits over the next six months are:

A) $28.31 million.
B) $33 million.
C) $64.69 million.
D) $−2.31 million.