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If a company has a 60% chance of a $75,000 return under normal but a 40% chance of a $20,000 return when money is tight. What is expected return?

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Question added by Shazia Anees , Assistant Manager Finance , Arham Trading Company
Date Posted: 2015/05/22
Shahbaz Hayder
by Shahbaz Hayder , Group Head of Finance , Sharif Group of Companies

$53,000 is the right answer.

Ahmed kandil
by Ahmed kandil , Cost Controller , Battour Holding Cpompany

Correct answer is53000 thank you

FIFTY THREE  DOLLARS53...........

Gihan Perera
by Gihan Perera , Head Of Finance Department , SIBCO PVT LTD

$53,000 is the expected return

Abdul Majid Khatri
by Abdul Majid Khatri , A Qualified Chartered Accountant , Honeycomb Logistics Pvt. Ltd.

Expected Return = (75,000*60%) + (20,000*40%)

                                =45,000 +8,000

                                =53,000

Imtiaz Ahmad
by Imtiaz Ahmad , SR. WAREHOUSE SUPERVISOR , Basateen Foods Saudi Arabia Ltd

fifty three thousand us dollars.

Mohamed Abdelrahman
by Mohamed Abdelrahman , Senior Accountant , Msafat Company

correct answer <<<<<<<<<<<<

53000

Munavar Pk
by Munavar Pk , ACCOUNTANT , PIPE INDIA ENTERPRISES

my answer is

  (75000*60%)+(20000*40%)

=45000+8000

=53000

 

Muhsin Kamal
by Muhsin Kamal , Auditor , PricewaterhouseCoopers

Well, if the probability of $75000 is60% and and40% for $20000 then in this case the expected return will be around $53000.

 

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