0=(R.-R... XD 11 Where: pi = Probability of some state i Ri= Expected return in state i Rmean = Expected return Economic State 1 pi = Probability of some state i Ri- Expected return in state 1 Weighted Ri for each State i Boom 25 24% Normal .60 10% Bust .13 -2% Rmcan (Sum Column for Stock A Expected Return)