Calculate the expected value of return for the line

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Reference no: EM131510896

Risk Swan’s Sportswear is considering bringing out a line of designer jeans. After market research, the firm has established the expectations shown in the following shown in the following table about the annual rate of return. Use the table to calculate the expected value of return for the line.

Market acceptance Probability Annual rate of return

Very poor 0.06 0.004

Poor 0.21 0.033

Average 0.47 0.089

Good 0.21 0.159

Excellent 0.05 0.225

The expected return for the line is ___%

Reference no: EM131510896

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