Question: Given the following probabilities and expected returns: Scenario Severe recession Mild recession Normal Growth Boom economy Probability 0.1 0.2 0.45 0.25 E(r) S E(r)

Given the following probabilities and expected returns: Scenario Severe recession Mild recession Normal

Given the following probabilities and expected returns: Scenario Severe recession Mild recession Normal Growth Boom economy Probability 0.1 0.2 0.45 0.25 E(r) S E(r) B -0.25 -0.05 -0.15 0.12 0.11 0.06 0.32 -0.07 What is the expected return for Fund S given the scenarios?

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