Question: Practice Expected Return Again- See Section 8-2A Consider an investment that you predict will earn 3.6% in a recession, 36% during normal times, and 3.6%

 Practice Expected Return Again- See Section 8-2A Consider an investment that

Practice Expected Return Again- See Section 8-2A Consider an investment that you predict will earn 3.6% in a recession, 36% during normal times, and 3.6% in a economic boom. Given historical trends, you expect there to be a 20% likelihood of a recession, 60% chance the economy is considered normal, and a 20% chance of an economic boom With these predicted future returns and probabilties, calculate the expected return on the investment Keep your answer as a percentage (example 5.42% should be entered as 5.42) Round your answer to two decimals. If you think about this one for a minute, you might not need to do any calculations

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