Question: What is the expected return on a security given the following information? economy probability of state of economy rate of return boom .14 .18 normal

What is the expected return on a security given the following information? economy probability of state of economy rate of return boom .14 .18 normal .75 .11 recession .11 -.06 a)8.78 percent b)9.43 percent c)9.97 percent d)10.11 percent e)11.38 percent

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