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What is the expected return

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Reference no: EM133131737

Question - The following tables shows returns and probability of occurrence of those returns for three economic conditions.

 

Probability (Pi)

Return (Ri)

Recession

0.04

-3

Normal situation

0.75

10

Boom

0.21

15

Required - What is the expected return

a. 10.53

b. 10.43

c. 10.03

d. 10.33

Reference no: EM133131737

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