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: $$\begin{array} { | l | c | r | } \hline \begin{array} { l } \text { Economic } \\\text { State }\end{array} & \text { Probability } & \text { Return } \\\hline \text { Fast Growth } & 0.3 & 40 \% \\\hline \text { Slow Growth } & 0.4 & 15 \% \\\hline \text { Recession } & 0.3 & - 15 \% \\\hline\end{array}$$

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