Problem 11 5 Calculating Expected Return Consider the following information State of Economy Probability of State of Economy Rate of Return if State Occurs Recession 16 12 Normal 52 13 Boom 32 21 Calculate the expected return (Do not round intermediate calculations Enter your answer as a percent rounded to 2 decimal places, e g , 32 16 ) Expected return

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Question: Problem 11-5 Calculating Expected Return Consider the following information: State of Economy Probability of State of Economy Rate of Return if State Occurs Recession .16

Problem 11-5 Calculating Expected Return

Consider the following information:

State of Economy	Probability of State of Economy		Rate of Return if State Occurs
Recession		.16		.12
Normal		.52		.13
Boom		.32		.21

Calculate the expected return. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Expected return

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