Question: Based on the following information, calculate the expected return: State of Economy Probability of State of Economy Portfolio Return If State Occurs Recession 0.1 -0.18

Based on the following information, calculate the expected return:

State of Economy

Probability of State of Economy

Portfolio Return If State Occurs

Recession

0.1

-0.18

Normal

0.6

0.11

Boom

0.3

0.26

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