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Use the following information on states of the economy and stock returns to calculate the expected return for Dingaling Telephone: (Do not round intermediate calculations.
Use the following information on states of the economy and stock returns to calculate the expected return for Dingaling Telephone: (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
State of Economy | Probability of State of Economy | Security Return If State Occurs | ||||||||||
Recession | 0.4 | -11 | % | |||||||||
Normal | 0.2 | 16 | ||||||||||
Boom | ? | 23 | ||||||||||
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