# Calculating Rate of return with probability

5. Calculating Expected Return. Based on the following information, calculate the

expected return.

State of Probability of State Rate of Return

Economy of Economy if State Occurs

Recession .30 -.02

Boom .70 .24

https://brainmass.com/business/business-math/calculating-rate-of-return-with-probability-39148

#### Solution Preview

Expected Return is defined as the summation of Probabilities multiplied by the corresponding ...

#### Solution Summary

The solution explains how to calculate rate of return given the probability of the returns

$2.19