Based on Avalon's earnings history over the past 15 years, which have covered various states of the economy, the venture capital execs want Avalon to estimate their overall returns. Given the following estimates of economy over the next several years, determine Avalon's expected rate of return.

Boom Prob of State of the Economy 10% Rate of Return if State Occurs 24%

Normal Prob of State of the Economy 50% Rate of Return if State Occurs 16.5%

Recession Prob of State of the Economy 40% Rate of Return if State Occurs -20.00%

Expected return for "average" company project (based on assumed economic probabilities) =