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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 | 0.25 | 8 | % | |||||||||
Normal | 0.50 | 13 | ||||||||||
Boom | 0.25 | 23 | ||||||||||
What is the expected return
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