Question: Using the probabilistic method, what is the expected return based on the following information? Outcome Probability Return Recession 25% -30% Expansion 40% 15% Boom 35%

  1. Using the probabilistic method, what is the expected return based on the following information?

Outcome

Probability

Return

Recession

  1. 25%
  2. -30%
  3. Expansion
  4. 40%
  5. 15%
  6. Boom
  7. 35%
  8. 55%

  1. 17.75%
  2. 15.96%
  3. 13.00%
  4. 16.00%

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