Question: The following is the daily return schedule for operating various businesses under bad, normal, and good weather. Return on Investment Type of Business Good Weather

The following is the daily return schedule for operating various businesses under bad, normal, and good weather.
Return on Investment
Type of Business
Good Weather
(Probability =0.25)
Normal Weather
(Probability =0.5)
Bad Weather
(Probability =0.25)
16%
12%
-12%
Ice Cream Shop
-8%
10%
20%
Coffee Shop
12%
6%
-8%
Bikini Shop
12%
8%
-4%
Cold Drinks Shop
Akaldeep has a portfolio consisting of 11% in an Ice Cream Shop, 26% in a Coffee Shop, 11% in a Bikini Shop, and the rest in a Cold Drinks Shop. Determine the overall expected return rate on his investments.
a.
1.43%
b.
3.48%
c.
6.96%
d.
6.41%
e.
6.41%

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