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Consider the following information: State of Economy Probability of State of Economy Rate of Return if State Occurs Recession .11 .09 Normal .45 .12 Boom
Consider the following information: |
State of Economy | Probability of State of Economy | Rate of Return if State Occurs |
Recession | .11 | .09 |
Normal | .45 | .12 |
Boom | .44 | .35 |
Calculate the expected return. |
-
20.80%
-
2.53%
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19.81%
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18.82%
-
20.60%
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