Question: Compute the expected return given these three economic states, their likelihoods, and the potential returns: Economic State Fast growth Slow growth Recession Probability 0.2 8.6

Compute the expected return given these three economic states, their likelihoods, and the potential returns: Economic State Fast growth Slow growth Recession Probability 0.2 8.6 0.2 Return 35% 10 -30 Expected return %

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