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Consider the following information: State of Econom Recession Normal Boom Probability of State of Economy 0.21 0.45 0.34 Rate of Return if State Occurs 0.05

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Consider the following information: State of Econom Recession Normal Boom Probability of State of Economy 0.21 0.45 0.34 Rate of Return if State Occurs 0.05 0.13 0.31 Required: Calculate the expected return. ? 15.34% ? 16.11% o 15.95% ? 14.57% o 2.60%

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