Use the following information on states of the economy and stock returns to calculate the expected return for Dingaling Telephone State of Economy Probability of State of Economy Security Return if State Occurs Recession 25 8 Normal 13 50 23 Boom 25...

Use the following information on states of the economy and stock returns to calculate the expected return

Question:

Use the following information on states of the economy and stock returns to calculate the for Dingaling Telephone: State of Economy Probability of State of Economy Security Return if State Occurs Recession .25 -8% Normal 13 .50 23 Boom

State of Economy Probability of State of Economy Security Return if State Occurs Recession .25 -8% Normal 13 .50 23 Boom

Expected Return
The expected return is the profit or loss an investor anticipates on an investment that has known or anticipated rates of return (RoR). It is calculated by multiplying potential outcomes by the chances of them occurring and then totaling these...