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

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

State of

Probability of State

Rate of Return if

Economy

of Economy

State Occurs

Recession

.10

-.15

Normal

.50

.09

Boom

.30

.23

ANSWER I would like to know if my answer is correct :)?

Expected return = (.-15 X .10) + (.09 X .50) + (.23 X .30) =

=. - 1.5 + .045 + .069

= -1.386 ANSWER

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