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You have analyzed Farmer's Bank and have identified three possible economic scenarios for the next year. Based on your analysis you have estimated the probability

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You have analyzed Farmer's Bank and have identified three possible economic scenarios for the next year. Based on your analysis you have estimated the probability of each scenario and the return to the bank in that scenario. The table below summarizes your analysis. Economic Rate of Probability Scenario Return Recession 0.40 -10% Normal 0.30 15% High Growth 0.30 20% Given this information, what is the expected return for Farmer's Bank? 9.5% None of these are correct. 8.5% O 12.5% 6.5%

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