Question: State of Economy Probability of State of Economy Rate of Return if State Occurs
Consider the following information:
State of Economy Probability of State of Economy Rate of Return if State Occurs
Recession .15 – .13
Normal .49 .15
Boom .36 .34
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 %:
