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%

Question

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%

Quizplus · Accepted Answer

Eatected Retun far Tap Chaice Carparation
$$=0 .25 ( 0.02 ) + \llbracket .5 ( 0.14 ) + ( 0.25 ) ( 0.30 )$$
$$= 0.005 + 0.07 + 0.075 = 0.15$$

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

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