Chapter $13-$ Dropbox $2\mathrm{.}4$

Problem $1$: Calculating Expected Return

Based on the following information, calculate the expected return:

Probability of this

Portfolio Return if

State of Economy

Recession

Normal

Boom

State Occuring

State Occurs

$10\%$

$-18\%$

$60\%$

$11\%$

$30\%$

$26\%$

Create your Original Solution Below $-$ Be sure to show all calculations and clearly indicate answers.