Compute the expected return

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Reference no: EM131174646

Compute the expected return given these three economic states, their likelihoods, and the potential returns: Fast Growth State has a probability of 0.3 and 40% return. Slow Growth State has a probability of 0.4 and 15% return. Recession State has a probability of 0.3 and -15% return.

	7.1%
	13.50%
	21.34%
	38.95%

Reference no: EM131174646

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