Question: What is the expected return on a security given the following information? State of Economy Probability of State Rate of Return Boom 0.3 8% Normal

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

State of Economy Probability of State Rate of Return
Boom 0.3 8%
Normal 0.4 11%
Recession 0.1 -2%

Group of answer choices:

6%

9.2%

8.8%

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