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You have concluded that next year the following relationships are possible: Economic Status Probability Rate of Return Weak Economy 0.40 -35% Static Economy 0.20 5%

You have concluded that next year the following relationships are possible:

Economic Status

Probability

Rate of Return

Weak Economy

0.40

-35%

Static Economy

0.20

5%

Strong Economy

0.40

40%

What is your expected rate of return (in percentage) for next year?

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