6.97 and 6.98 are incorrect.

Problem 11-1 Expected Returns (L01, CFA1) 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.) Probability Security of Return State of State of if State Economy Economy Occurs Recession 0.45 -5.009 Normal 12.00 0.15 16.00 0.40 Boom Answer is complete but not entirely correct. Expected 6.98 return