Question

Security Analysts that have evaluated Concordia Corporation, have determined that there is a 15% chance that the firm will generate earnings per share of $2.40; a 60% probability that the firm will generate earnings per share of $3.10; and a 25% probability that the firm will generate earnings per share of $3.80. What are the expected earnings per share for Concordia Corporation

Answer 1

3.17

Step-by-step explanation:

Expected earnings per share = (15%x2.40)+(60%x3.10)+(25%x3.80)