Compute the Expected Return Given These Three Economic States, Their

Multiple Choice

Compute the expected return given these three economic states, their likelihoods, and the potential returns:
$$\begin{array}{l}\begin{array} { c c r } \text { Eccrorric State }&\text { Probability } & \text { Return } \\\text { fast growth }&0.3 & 40 \% \\\text {slow growth }&0.4 & 15\% \\\text { recession }&0.3 & - 15\%\end{array}\end{array}$$

A) 13.5 percent
B) 22.5 percent
C) 18.3 percent
D) 40.0 percent