Calculating Expected Return

Based on the following information, calculate the expected return:

Probability of this

Portfolio Return if

State of Economy

Recession

Normal

Boom

State Occuring State Occurs

$10\%$

$-18\%$

$60\%$

$11\%$

$30\%$

$26\%$

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Answer rating: 100% (QA)

To calculate the expected return of the portfolio we need to multiply the possibl... View the full answer