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: $$\begin{array} { | l | c | r | } \hline \begin{array} { l } \text { Economic } \\\text { State }\end{array} & \text { Probability } & \text { Return } \\\hline \text { Fast Growth } & 0.1 & 50 \% \\\hline \text { Slow Growth } & 0.6 & 8 \% \\\hline \text { Recession } & 0.3 & - 10 \% \\\hline\end{array}$$

A) 6.8 percent
B) 12.8 percent
C) 16.0 percent
D) 22.7 percent