Question: A common application of calculating expected returns is forecasting the expected return of the stock market.For example, if you believe there is a 15% chance

A common application of calculating expected returns is forecasting the expected return of the stock market.For example, if you believe there is a 15% chance of a recession and a stock market return of -20% and an 85% chance of continued growth with the stock market appreciating 12%.Using this data, what is the expected return for the stock market?

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