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The economy can be either weak, normal, or strong. The probability of a weak economy is 0.13 and 0.64 for a normal economy. In a
The economy can be either weak, normal, or strong. The probability of a weak economy is 0.13 and 0.64 for a normal economy. In a weak economy the return of the market is -3.84%, in a normal economy its 11.16%, and 15.55% in a strong economy. Calculate the expected return.
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