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5. Calculating Expected Return [LO1] Based on the following information, calculate the expected return: Probability of State of Economy State of Economy Recession Boom .20

5. Calculating Expected Return [LO1] Based on the following information, calculate the expected return: Probability of State of Economy State of Economy Recession Boom .20 .80 Portfollo Return If State Occurs -.13 .19 2011 Page 459

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