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Umbrella company stock is expected to yield -5% and 10% when it is sunny and rainy respectively. The probability of sun is 70% while the

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Umbrella company stock is expected to yield -5% and 10% when it is sunny and rainy respectively. The probability of sun is 70% while the probability of rain is 30%. Choose the best expression for the expected return on Umbrella Co. a) (-0.05+0.1)/2 b) 70x(-0.05)+30x0.1 c) (0.7+0.3)/2 d) 0.7X(-0.05)+0.3x0.1 e) None of the above Choose the closest value for the expected return on Umbrella Co. a) 5.5% b) 0.055% c) -0.5% d) -0.005% e) 0%

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