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Compute the expected return given these three economic states, their likelihoods, and the potential returns: Economic State Probability Return Fast Growth .3 31.5% Slow Growth

Compute the expected return given these three economic states, their likelihoods, and the potential returns:

Economic State Probability Return

Fast Growth .3 31.5%

Slow Growth .4 6.75%

Recession .3 -2.75%

17.8% 20.5% 11.3% 13.0%

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