Consider the following information:

State of Economy	Probability of State of Economy	Rate of Return if State Occurs
Recession	0.21	-0.07
Normal	0.55	0.16
Boom	0.24	0.32

Required:

Calculate the expected return.

rev: 09_20_2012

15.61%

15.76%

2.73%

15.01%

14.26%