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Consider the following information: State of Economy Probability of State of Economy Rate of Return if State Occurs Recession 0.21 -0.01 Normal 0.65 0.14 Boom

Consider the following information:

State of Economy	Probability of State of Economy	Rate of Return if State Occurs
Recession	0.21	-0.01
Normal	0.65	0.14
Boom	0.14	0.28

A12.81%

B13.32%

C2.73%

D13.45%

E12.17%

Required:

Calculate the expected return.

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