Use the Information for the Question(s)below

question 69

Multiple Choice

Use the information for the question(s) below.
Consider an economy with two types of firms,S and I.S firms always move together,but I firms move independently of each other.For both types of firm there is a 70% probability that the firm will have a 20% return and a 30% probability that the firm will have a -30% return.
-What is the expected return for an individual firm?

• A)14%
• B)3%
• C)5%
• D)-5%

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Definitions:

Writ Of Garnishment

A legal order issued by a court that allows for the withholding of a person's assets or earnings for the payment of a debt.

Public Policy

Public policy represents the fundamental guidelines or principles that govern the actions and decisions of a government, reflecting the social and economic priorities of the society.

Judicial Liens

Legal claims against property that are obtained through court judgment, often used to secure payment of a debt or fulfillment of an obligation.

Garnishments

Legal orders requiring a portion of an individual's earnings to be withheld by an employer for the payment of a debt.