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10) You are considering investing in a project with the following possible outcomes: Probability of Investment States Occurrence Returns State 1: Economic boom 18% 20%

10) You are considering investing in a project with the following possible outcomes:

Probability of Investment

States Occurrence Returns

State 1: Economic boom 18% 20%

State 2: Economic growth 42% 16%

State 3: Economic decline 40% 3%

Calculate the expected rate of return.

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