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Idaho Slopes (IS) and Dakota Steppes (DS) are both seasonal businesses. IS is a downhill skiing facility, while DS is a tour company that specializes

Idaho Slopes (IS) and Dakota Steppes (DS) are both seasonal businesses. IS is a downhill skiing facility, while DS is a tour company that specializes in walking tours and camping. The equally likely returns on each company over the next year is expected to be:

Economy Idaho Slopes Dakota Steppes
Strong Downturn -10% 2%
Mild Downturn -4% 7%
Slow Growth 4% 6%
Moderate Growth 12% 4%
Strong Growth 20% 4%

The means of IS and DS are:

Multiple Choice

  • 5.5%; 5.75%.

  • 10%; 6%.

  • 4%; 6%.

  • 4.4%; 4.6%.

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