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tion of cash flows, ased on the state of economy. Given the following probability 50,000 in a security that has several Probability State of Economy

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tion of cash flows, ased on the state of economy. Given the following probability 50,000 in a security that has several Probability State of Economy Low growth Moderate Level Growth Returns 8% 0.2 Cash Flows SAR5,000 SAR8,000 SAR12,000 0.4 1094 High Growth 0.5 12 A. what is the expected cash flow: (2 Marks) B. What is the expected rate of return on the investment? (2 Marks)

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