Question: Compute the expected return for XYZ stock given these four economic states and returns, their likelihoods, and the potential returns for XYZ stock in the

Compute the expected return for XYZ stock given these four economic states and returns, their likelihoods, and the potential returns for XYZ stock in the following table.

Economic State Probability Return
Fast Growth 0.35 50%
Slow Growth 0.45 20%
Recession 0.10 0%
Depression 0.10 -10%

Group of answer choices

25.5%

15.0%

21.0%

16.5%

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