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5. Calculating Expected Return [ LO1] Based on the following information, calculate the expected return: begin{tabular}{|lcc|} hline begin{tabular}{l} State of Economy end{tabular} & begin{tabular}{c}

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5. Calculating Expected Return [ LO1] Based on the following information, calculate the expected return: \begin{tabular}{|lcc|} \hline \begin{tabular}{l} State of \\ Economy \end{tabular} & \begin{tabular}{c} Probability of \\ State of Economy \end{tabular} & \begin{tabular}{c} Portfollo Return \\ If State Occurs \end{tabular} \\ \hline Recession & .20 & -.13 \\ Boom & .80 & .19 \\ \hline \end{tabular}

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