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P13-6 Calculating Expected Return [LO1] Consider the following information: State of Economy Probability of State of Economy Rate of Return if State Occurs Recession .11

P13-6 Calculating Expected Return [LO1] Consider the following information: State of Economy Probability of State of Economy Rate of Return if State Occurs Recession .11 .08 Normal .45 .14 Boom .44 .29 Calculate the expected return. Multiple Choice 18.18% 17.27% 18.91% 19.09% 2.33%

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