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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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