As the manager of High Speed Records, you have signed a new artist to the label. There are three different outcomes for investing in the artist. What is the expected return on investment using the information below? Outcome Probability Return 1 ...35.20 2 ...25.36 3 ...40.10 * Make sure your answer is in a decimal format (.25,.90, etc.) and not a percentage (25%). Round to the nearest hundredth. (0.089 - > 0.09)

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Business

Jersey

3 April, 09:44

As the manager of High Speed Records, you have signed a new artist to the label. There are three different outcomes for investing in the artist. What is the expected return on investment using the information below? Outcome Probability Return 1 ...35.20 2 ...25.36 3 ...40.10 * Make sure your answer is in a decimal format (.25,.90, etc.) and not a percentage (25%). Round to the nearest hundredth. (0.089 - > 0.09)

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Answers (1)

Know the Answer?

Grady Fowler · Answer 1

Answer: 0.2

Explanation:

To get the Outcome Probability Return we multiply the probability by return, then add them all up.

1).35.20 = 0.07

2).25.36 = 0.09

3).40.10 = 0.04

Total = 0,2

Therefore Outcome Probability Return = 0.2