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Problem 11-5 Calculating Expected Return [LO 1] Consider the following information: State of Economy Probability of State of Economy Rate of Return if State Occurs
Problem 11-5 Calculating Expected Return [LO 1]
Consider the following information:
State of Economy | Probability of State of Economy | Rate of Return if State Occurs | ||
Recession | .43 | .12 | ||
Boom | .57 | .24 | ||
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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