Question: Based on the following information, what is the expected return? State of Economy | Probability of State of Economy | Rate of Return if State

Based on the following information, what is the expected return?

State of Economy | Probability of State of Economy | Rate of Return if State Occurs

Recession | .32 | -10.00%

Normal | .37 | 11.50%

Boom | .31 | 21.40%

A) 14.09%

B) 7.63%

C) 7.66%

D) 10.89%

E) 7.69%

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