Economy Probability of State of Economy Rate of Return

Question: State of Economy Probability of State of Economy Rate of Return if State Occurs

Consider the following information:

State of Economy Probability of State of Economy Rate of Return if State Occurs

Recession .15 – .13

Normal .49 .15

Boom .36 .34

Calculate the expected return. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Expected return %: