Question
Consider the following information: State of Economy Probability of State of Economy Portfolio Return If State Occurs Recession .25 ? .21 Normal .50 .16 Boom
Consider the following information:
State of Economy Probability of State of Economy Portfolio Return If State Occurs
Recession .25 ? .21
Normal .50 .16
Boom .25 .30
Calculate the expected return. (Do not round intermediate calculations. Enter the answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Expected return:
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Analysis for Financial Management
Authors: Robert C. Higgins
12th edition
1259918963, 9781260140729 , 978-1259918964
