Problem 11 5 Calculating Expected Return LO 1 Consider the following information State of Economy Probability of State of Economy Rate of Return if State Occurs Recession 26 12 Boom 74 24 Required Calculate the expected return ( Do not round intermediate calculations Enter your answer as a percentage r ounded to 2 decimal places (e g , 32 16) )

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Question: Problem 11-5 Calculating Expected Return [LO 1] Consider the following information: State of Economy Probability of State of Economy Rate of Return if State Occurs

Problem 11-5 Calculating Expected Return [LO 1]

Consider the following information:

State of Economy	Probability of State of Economy	Rate of Return if State Occurs
Recession	.26	?.12
Boom	.74	.24

Required:

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

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