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

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 %

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