As the manager of high speed records, you have signed a new artist to the label. there are three different outcomes for investing in the artist. what is the expected return on investment using the information below? outcome probability return1. 35 .202. 25 .363. 40 .10

0.2 or 20%

Explanation:

The three possible outcomes, with respective probabilities and returns, as follows

Outcome 1: Probability (P) = 0.35, Return (R) = 0.20

Outcome 2: Probability = 0.25, Return = 0.36

Outcome 3: Probability = 0.40, Return = 0.10.

The expected return will be computed as follows.

Expected Return =

= (0.35*0.20) + (0.25*0.36) + (0.40*0.10)

= 0.07 + 0.09 + 0.04

= 0.2

Therefore expected return = 0.2 or 20%

income statement is prepared in order to show the profits and loss of a business. in order to prepare the income statement she should collect all the income and expenses of the product with the cost of production.