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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 .1 29%
Expected Return Compute the expected return given these three economic states, their likelihoods, and the potential returns:
Economic State | Probability | Return |
Fast Growth | .1 | 29% |
Slow Growth | .8 | 14% |
Recession | .1 | -29% |
14.0%
14.3%
11.2%
17.0%
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