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3. Compute the expected return given these three economic states, their likelihoods, and the potential returns: Economic State Probability Return Fast growth 0.25 15% Slow

3. Compute the expected return given these three economic states, their likelihoods, and the potential returns: Economic State Probability Return Fast growth 0.25 15% Slow growth 0.45 10% Recession 0.30 25%

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