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Consider the following information: State of Economy Recession Normal Boom Probability of State of Economy 0.21 0.55 0.24 Rate of Return if State Occurs 0.04

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Consider the following information: State of Economy Recession Normal Boom Probability of State of Economy 0.21 0.55 0.24 Rate of Return if State Occurs 0.04 0.12 0.25 Required: Calculate the expected return o 12.35% o 11.17% ? 12.23% 0 11.76% 0 2.20%

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