State of economy probability of state of economy portfolio


Consider the following information:

State of Economy Probability of State of Economy Portfolio Return If State Occurs

Recession .25 ? .21

Normal .50 .16

Boom .25 .30

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

Expected return:

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Financial Management: State of economy probability of state of economy portfolio
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