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Based on the following information, calculate the expected return: State of Economy Probability of State of Economy Portfolio Return if State Occurs Recession 0.10 -0.15
Based on the following information, calculate the expected return:
| State of Economy | Probability of State of Economy | Portfolio Return if State Occurs |
| Recession | 0.10 | -0.15 |
| Normal | 0.60 | 0.11 |
| Boom | 0.30 | 0.25 |
| A. | 7.0 percent | |
| B. | 13.4 percent | |
| C. | 12.6 percent | |
| D. | 9.8 percent |
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Lectures Problems And Solutions For Ordinary Differential Equations
Authors: Yuefan Deng
1st Edition
9814632244,9814632279
