Assume that you are considering an investment costing $12,000, for which the future cash flows from owning the security depend on the state of the economy. Given the below table data, the Expected Rate of Return is; (Hint: Calculate returns first to find expected returns) State of Economy Recession Moderate Growth Strong Growth 11.6% Probability Cashflows 0.5 800 0.2 1200 0.3 1600 9.3% 12.3%