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Mini Sweet Gelato plc. analysed the report from scientists who predict the weather and climate in 2021 as follows. The probability of a hot summer
Mini Sweet Gelato plc. analysed the report from scientists who predict the weather and climate in 2021 as follows. The probability of a hot summer is 0.3. The probability of a moderately warm summer is 0.2, whereas the probability of a wet and cold summer is 0.5. If a hot summer occurs then the return on shares in the Gelato manufacturing company will be 60 per cent. If moderately warm the return will be 30 per cent, and if cold 2 per cent. What is the expected return?
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