Question: Based on the following information, calculate the expected return: State of Economy............Probability of State of Economy.......Portfolio Return If State Occurs Recession ............................... 10 ............................................................ -.18

Based on the following information, calculate the expected return:

State of Economy............Probability of State of Economy.......Portfolio Return If State Occurs

Recession ............................... 10 ............................................................ -.18

Normal ....................................60 ................................................................11

Boom ...................................... 30 ............................................................... 26

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