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Karen is considering investing in a company stock and is aware that the return on investment is particularly sensitive to how the economy is performing

Karen is considering investing in a company stock and is aware that the return on investment is particularly sensitive to how the economy is performing her analysis suggests that four states of the economy can affect the return of her investment.

boom probability point return 25%

good probability point return 15%

level probability .1 return 10%

slump Probability .5 return -5%

Use a table overturns and probabilities about to determine the expected return on Karens invesm

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