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Consider the following information: state of economy probability of state of economy rate of return if state occurs recession .11 -.03 normal .45 .12 boom
Consider the following information:
state of economy | probability of state of economy | rate of return if state occurs |
recession | .11 | -.03 |
normal | .45 | .12 |
boom | .44 | .32 |
Calculate the expected return.
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