Question: Compute the expected return given these three economic states, their likelihoods, and the potential returns Economic state probability return fast growth 0.2 23% slow growth

Compute the expected return given these three economic states, their likelihoods, and the potential returns

Economic state probability return
fast growth 0.2 23%
slow growth 0.6 14%
recession 0.2 -30%

A)3.5%

B)7%

C)7.5%

D)12.5%

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