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Consider the following information: State of Economy Probability of State of Economy Rate of Return if State Occurs Recession .11 .09 Normal .45 .12 Boom

Consider the following information:

State of Economy Probability of State of Economy Rate of Return if State Occurs
Recession .11 .09
Normal .45 .12
Boom .44 .35

Calculate the expected return.

  • 20.80%

  • 2.53%

  • 19.81%

  • 18.82%

  • 20.60%

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