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Find probability return boom 04 2500 good 01 1500 level

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Barbara is considering investing in a stock and is aware that the return on that investment is particularly sensitive to how the economy is performing. Her analysis suggests that four states of the economy can affect the return on the investment. Using the table of returns and probabilities below, find Probability Return _____________Boom 0.4 25.00% Good 0.1 15.00% Level 0.4 10.00% Slump 0.1 -5.00% _____________ What is the expected return on Barbara s investment?

Reference no: EM13480024

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