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Hi I need help with this problem: Serena’s Skincare sells Sunscreen in Orlando, Florida. The annual...

Hi I need help with this problem:

Serena’s Skincare sells Sunscreen in Orlando, Florida. The annual return for the company is affected by the average temperature of the year. When the weather is cold (25% of the year), normal (40% of the year) and hot (35% of the year), its return is expected to be -10%, 8%, and 15% respectively. What is the expected return? Round to the nearset hundredth percent. Answer in the percent format. Do not include % sign in your answer (i.e. If your answer is 4.33%, type 4.33 without a % sign at the end.)

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Answer #1

Expected Return = Sum of (weight * return)

= (25% * -10%) + (40% * 8%) + (35% * 15%)

= -2.5% + 3.2% + 5.25%

= 5.95%

Expected return = 5.95

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