Question: A portfolio's value increases by 1 6 % during a financial boom and by 7 % during normal times. It decreases by 1 2 %

A portfolio's value increases by 16% during a financial boom and by 7% during normal times. It decreases by 12% during a recession. What is the expected return on this portfolio if each scenario is equally likely? Fill in the blanks and round to 4 decimal places, if needed.

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