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 .30 9.80%
Normal .39 11.30%
Boom .31 21.40%

Multiple Choice

  • 11.04%

  • 13.98%

  • 7.63%

  • 8.10%

  • 7.87%

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