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Consider an investment that you predict will earn 2.7% in a recession, 5.9% during normal times, and 9.5% in a economic boom. Given historical trends,
Consider an investment that you predict will earn 2.7% in a recession, 5.9% during normal times, and 9.5% in a economic boom. Given historical trends, you expect there to be a 20% likelihood of a recession, 60% chance the economy is considered normal, and a 20% chance of an economic boom. With these predicted future returns and probabilties, calculate the expected return on the investment.
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Keep your answer as a percentage (example 5.42% should be entered as 5.42) Round your answer to two decimals.
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