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Consider the following probability tree for the returns of a financial security: Return 22% State of the Economy Good Average Poor Probability 0.3 0.4 0.3
Consider the following probability tree for the returns of a financial security: Return 22% State of the Economy Good Average Poor Probability 0.3 0.4 0.3 10% 0% What is the expected return? Note: Show your answer in units of percents, use plain numbers with at least two digits after the decimal (e.g. for 12.34%, type 12.34)
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