Problem 13 5 Calculating Expected Return LO1 Consider the following information State of Economy Probability of State of Economy Portfolio Return if State Occurs Recession 28 18 Boom 72 22 Calculate the expected return (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e g , 32 16 )

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Question: Problem 13-5 Calculating Expected Return [LO1] Consider the following information: State of Economy Probability of State of Economy Portfolio Return if State Occurs Recession .28

Problem 13-5 Calculating Expected Return [LO1]

Consider the following information:

State of Economy	Probability of State of Economy	Portfolio Return if State Occurs
Recession	.28	.18
Boom	.72	.22

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

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