Compute the expected return given these three economic, Financial Management

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Compute the expected return given these three economic

1. Compute the expected return given these three economic states, their likelihoods, and the potential returns: (Round your answer to 2 decimal places.) Economic State Probability Return Fast growth 0.24 36 % Slow growth 0.36 11 Recession 0.40 –28

2. Ella Funt is planning on buying a $160,000 home and putting 20% down. She will finance the remainder with a 4%, 15 year mortgage through her lender. What will the total interest cost be for Ella’s 15 year mortgage?

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