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

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6. Calculating Expected Return [ [ LO1] Based on the following information, calculate the expected return: \begin{tabular}{|lcc|} \hline \begin{tabular}{c} State of \\ Economy \end{tabular} & \begin{tabular}{c} Probablilty of \\ State of Economy \end{tabular} & \begin{tabular}{c} Portfollo Return \\ If State Occurs \end{tabular} \\ \hline Recession & .10 & -.17 \\ Normal & .60 & .08 \\ Boom & .30 & .27 \\ \hline \end{tabular}

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