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Consider the following information: State of Economy Probability of State of Economy Rate of Return if State Occurs Recession 0.11 -0.05 Normal 0.45 0.16 Boom

Consider the following information: State of Economy Probability of State of Economy Rate of Return if State Occurs Recession 0.11 -0.05 Normal 0.45 0.16 Boom 0.44 0.33 Required: Calculate the expected return. 2.93% 22.02% 22.23% 20.11% 21.17%

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