# Calculating Rate of return with probability

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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

$2.49