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Based on the following information, what is the expected return? State of Economy Recession Normal Probability of State of Economy .27 .30 Rate of Return

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Based on the following information, what is the expected return? State of Economy Recession Normal Probability of State of Economy .27 .30 Rate of Return if State Occurs -10.70% 12.20% 21.40% Boom .43 Multiple Choice 12.86% O 8.80% O 9.97% O O 15.75% O O 7.63%

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