Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Swan's Sportswear is conisdering bringing out a line of designer jeans. After market research, the firm has established the expectations shown in the following table
Swan's Sportswear is conisdering bringing out a line of designer jeans. After market research, the firm has established the expectations shown in the following table about the annual rates of return. Use the table to calculate the average return for the line.
Question content area bottom
Part 1
The average return for the line is____%. (Enter as a percentage and round to two decimal places.)
Market acceptance | Probability | Annual rate of return | |
Very poor | 0.08 | 0.028 | |
Poor | 0.17 | 0.024 | |
Average | 0.41 | 0.082 | |
Good | 0.25 | 0.125 | |
Excellent | 0.09 | 0.173 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started