Based on the following information, calculate the expected return: State of Probability of Portfolio Return Economy State

Question:

Based on the following information, calculate the expected return:

State of Probability of Portfolio Return

Economy State of Economy if State Occurs

Recession........................0.25.............................-.08

Boom.............................0.75.............................0.21

Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...