Question: Compute the expected return given these three economic states, their likelihoods, and the potential returns: Fast Growth State has a probability of 0.2 and 23%
Compute the expected return given these three economic states, their likelihoods, and the potential returns: Fast Growth State has a probability of 0.2 and 23% return. Slow Growth State has a probability of 0.6 and 14% return. Recession State has a probability of 0.2 and -30% return.
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