Question: Based on the following information, calculate the expected return. State of Economy: Recession Probability of State of Economy: .25 Rate of Return if State Occurs:

Based on the following information, calculate the expected return.

State of Economy: Recession

Probability of State of Economy: .25

Rate of Return if State Occurs: -.09

State of Economy: Normal

Probability of State of Economy: .45

Rate of Return if State Occurs: .11

State of Economy: Boom

Probability of State of Economy: .30

Rate of Return if State Occurs: .30

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