Question: Problem 13-5 Portfolio Expected Return [LO1] Consider the following information: State of Economy Probability of State of Economy Portfolio Return if State Occurs Recession 0.22

Problem 13-5 Portfolio Expected Return [LO1]

Consider the following information:

State of Economy Probability of State of Economy Portfolio Return if State Occurs
Recession 0.22 ? 0.12
Boom 0.78 0.22

Calculate the expected return. (Round your answer to 2 decimal places. (e.g., 32.16))

Expected return %

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