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Expected Return Compute the expected return given these three economic states, their likelihoods, and the potential returns: Economic State Probability Return Fast Growth .2 19%

Expected Return Compute the expected return given these three economic states, their likelihoods, and the potential returns:

Economic State Probability Return
Fast Growth .2 19%
Slow Growth .7 14%
Recession .1 -29%

4.0%

16.5%

10.7%

11.0%

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