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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 35 % Slow
Compute the expected return given these three economic states, their likelihoods, and the potential returns:
Economic State | Probability | Return | |||
Fast growth | 0.2 | 35 | % | ||
Slow growth | 0.6 | 10 | |||
Recession | 0.2 | 30 | |||
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