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Consider the following information: State of Economy Probability of State of Economy Portfolio Return if State Occurs Recession 0.18 -0.11 Normal 0.54 0.16 Boom 0.28

Consider the following information:

State of Economy Probability of State of Economy Portfolio Return if State Occurs

Recession 0.18 -0.11

Normal 0.54 0.16

Boom 0.28 0.27

Calculate the expected return on this portfolio.

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