Question: Problem 11-6 Calculating Expected Return [LO 1] Consider the following information: State of Economy Probability of State of Economy Rate of Return if State Occurs

Problem 11-6 Calculating Expected Return [LO 1]

Consider the following information:

State of Economy Probability of State of Economy Rate of Return if State Occurs
Recession .16 .13
Normal .49 .15
Boom .35 .34

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).)

Expected return %

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