CH 11 Drill Question 2

Consider the following information:

State of Economy	Probability of State of Economy	Rate of Return if State Occurs
Recession	.16	.12
Normal	.48	.14
Boom	.36	.33

Required:

Calculate the expected return. (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).)

Expected return

%