Question: Based on the following information, what is the expected return? State of economy Probability of state rate of return if state occurs recession .31 -10.30%

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

State of economy Probability of state rate of return if state occurs

recession .31 -10.30%

normal .34 11.80%

boom .35 21.40%

A) 7.63% B)8.31% C) 14.70% D) 7.97% E) 11.50%

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