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b) Depending upon the state of the economy, two investments, Good and Better, have the following probability distributions and associated rates of return: Economic State

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b) Depending upon the state of the economy, two investments, Good and Better, have the following probability distributions and associated rates of return: Economic State Recession Normal Boom Probability of Occurrence 0.2 0.5 0.3 Rate of Return Good Better 59% 7% 15% 1096 20% 25% Assuming you invest RM50,000 in Good and RM75,000 in Better, calculate the expected return on Good and Better. (20 marks)

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