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Use the Following Information to Calculate Your Company's Expected Return

Question 6

Multiple Choice

Use the following information to calculate your company's expected return.  State  Probability  Return  Boom 20%40% Normal 60%15% Recession 20%(20%) \begin{array}{lll}\text { State } & \text { Probability } & \text { Return } \\\hline \text { Boom } & 20 \% & 40 \% \\\text { Normal } & 60 \% & 15 \% \\\text { Recession } & 20 \% & (20 \%) \end{array}


A) 11%
B) 13%
C) 15%
D) 17%

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