In the next year, the economy can enter either a boom, a bust or remain in a normal state with the probabilities stated in the table. An investment has the following returns given the specific states:

	Returns	Probability
Boom	10%	25%
Normal	12%	50%
Bust	32%	25%

What is the expected outcome of the investment next year?

(Answers are rounded to two decimals).

a.The expected value is 21.50 %

b.The expected value is 13.50 %

c.The expected value is 16.50 %

d.The expected value is 18.00 %

e.The expected value is 40.50 %