Question: What is the expected return on a security given the following information? State of economy probability of state of economy rate of return boom .20

What is the expected return on a security given the following information?

State of economy probability of state of economy rate of return

boom .20 .18

normal .70 .11

recession .10 -.24

a.6.50 percent b.8.90 percent c.11.64 percent d.11.98 percent e.13.70 percent

To whoever answers this can you please write down the calculator inputs please? I'd like to be able to do these on my own and giving me the answer alone doesn't help me. Thank you.

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