Compute the Expected Return Given These Three Economic States, Their

question 57

Multiple Choice

Compute the expected return given these three economic states, their likelihoods, and the potential returns: $$\begin{array} { | l | l | l | } \hline \begin{array} { l } \text { Economic } \\\text { State }\end{array} & \text { Probability } & \text { Return } \\\hline \text { Fast Growth } & 0.2 & 23 \% \\\hline \text { Slow Growth } & 0.6 & 14 \% \\\hline \text { Recession } & 0.2 & - 30 \% \\\hline\end{array}$$

• A)3.5 percent
• B)7.0 percent
• C)7.5 percent
• D)12.5 percent

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Definitions:

Sustainable Value Innovation

Creating value through innovations that not only benefit the company but also address societal needs and challenges, particularly in sustainability.

Differential Value

The unique added value of a product or service that sets it apart from competitors' offerings in the eyes of the customer.

Environmental Impact

The effect that human activities have on the environment, including natural resources, wildlife, and ecosystem health.

Environmentally Friendly Products

Goods and services designed to inflect minimal or no harm on the environment, often using sustainable resources, processes, or technologies.