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P8-8 BAR CHARTS AND RISK Swan's Sportswear plans to launch a line of designer jeans with the help of one of two well-known designers. Because

P8-8 BAR CHARTS AND RISK Swan's Sportswear plans to launch a line of designer jeans with the help of one of two well-known designers. Because of the highly competitive nature of the industry, the two lines of jeans have been given code names, Hug and Stretch. Swan's market research has established the forecasts below.

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Annual rate of return Market acceptance Probability Hug Stretch Very poor 0.05 0.0075 0.010 Poor 0.15 0.0125 0.025 Average 0.60 0.0850 0.080 Good 0.15 0.1475 0.135 Excellent 0.05 0.1625 0.150

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