Question: Compute the expected return given these three economic states, their likelihoods, and the potential returns: Economic State Probability Return Fast Growth 0.40 25% Slow Growth

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

Economic State Probability Return

Fast Growth 0.40 25%

Slow Growth 0.55 12%

Recession 0.05 50%

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