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Consider the following information: State of Economy Probability of State of Economy Rate of Return if State Occurs Recession .10 .17 Normal .60 .08 Boom
Consider the following information:
| State of Economy | Probability of State of Economy | Rate of Return if State Occurs |
|---|---|---|
| Recession | .10 | .17 |
| Normal | .60 | .08 |
| Boom | .30 | .27 |
Calculate the expected return.
Note: Do not round intermediate calculations and enter your answer as a percentrounded to 2 decimalplaces,e.g., 32.16.
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The Oxford Handbook Of Computational Economics And Finance
Authors: Shu-Heng Chen, Mak Kaboudan, Ye-Rong Du
1st Edition
0199844372, 978-0199844371
