Use the Following Information,which Describes the Possible Outcomes from Investing

Use the following information,which describes the possible outcomes from investing in a particular asset,to answer the following question(s) .

-What is the expected rate of return for an investment that has the following expected scenario? If there is an 18% probability of a recession,2.0% return;if there is a 65% probability of a moderate economy,9.5% return;if there is a 17% probability of a strong economy,14.2% return.

A) 11.25%
B) 7.33%
C) 8.95%
D) 9.59%

Correct Answer:

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