Suppose that there are two possible states of the world next year: boom or recession. Suppose that we forecast the following probabilities of these states and the returns to two US stocks, CXW (Corrections Corp of America; a prison stock) and AMR (parent of American Airlines). Tell the expected return to a portfolio invested 20% in CXW, and 80% in AMR. Please give your answer to four decimal places.

STATE	Prob.	R(CXW)	R(AMR)
Boom	0.75	-0.1	0.25
Recession	0.25	0.1	-0.25