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Based on the following information, calculate the expected return. State of Economy: Recession Probability of State of Economy: .25 Rate of Return if State Occurs:
Based on the following information, calculate the expected return.
State of Economy: Recession
Probability of State of Economy: .25
Rate of Return if State Occurs: -.09
State of Economy: Normal
Probability of State of Economy: .45
Rate of Return if State Occurs: .11
State of Economy: Boom
Probability of State of Economy: .30
Rate of Return if State Occurs: .30
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