Question
Consider the following information: State of Economy Probability of State of Economy Rate of Return if State Occurs Recession .22 .11 Normal .47 .13 Boom
Consider the following information:
| State of Economy | Probability of State of Economy | Rate of Return if State Occurs | ||||
| Recession | .22 | .11 | ||||
| Normal | .47 | .13 | ||||
| Boom | .31 | .32 | ||||
| | ||||||
Calculate the expected return. (Do not round intermediate calculations and enter your 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
8th International Edition
0071257063, 9780071257060
