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Suppose the future market states and the return of an asset is summarized by the...

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Finance

Suppose the future market states and the return of an asset is summarized by the table below. What is the expected return of this asset?

State of the Market

Probability

Year-end Price

Dividend

Return

Excellent

0.25

126.50

4.50

0.3100

Good

0.45

110.00

4.00

0.1400

Poor

0.25

89.75

3.50

-0.0675

Crash

0.05

46.00

2.00

-0.5200

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