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The management team of Sandi Cat Enterprises has had their Risk Management group provide an analysis of likely economic conditions in the next year and

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The management team of Sandi Cat Enterprises has had their Risk Management group provide an analysis of likely economic conditions in the next year and the likely returns on Sandi cat stock under these conditions. The results of their work are show below. Based on the information given, what is the expected return of Sandi Cat stock next year? Sandi Cat Enterprises Economic Scenario Probability of this Economic Scenario Rate of Return in this Scenario Strong Normal Weak 0120 0.30 0.50 80% 10% -30

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