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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 .3 30.6

Expected Return Compute the expected return given these three economic states, their likelihoods, and the potential returns. Economic State Probability Return Fast Growth .3 30.6 % Slow Growth .5 6.30 % Recession .2 -2.30 %

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