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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 | 10% |
Recession | .1 | -25% |
9.7%
4.0%
8.3%
13.3%
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