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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 | .26 | ?.12 |
| Boom | .74 | .24 |
| Required: |
| Calculate the expected return. (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).) |
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