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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 0.2 23 % Slow
Compute the expected return given these three economic states, their likelihoods, and the potential returns:
Economic State | Probability | Return | ||||
Fast Growth | 0.2 | 23 | % | |||
Slow Growth | 0.6 | 14 | % | |||
Recession | 0.2 | 30 | % | |||
Multiple Choice
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3.5 percent
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7.0 percent
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7.5 percent
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12.5 percent
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