Question: Compute the expected return given these three economic states, their likelihoods,and the potential returns: Economic State Probability Return Fast growth 0.26 60 % Slow growth
Compute the expected return given these three economic states, their likelihoods,and the potential returns:
Economic State Probability Return
Fast growth 0.26 60 %
Slow growth 0.37 27
Recession 0.37 -39
Expected Return:_____?______
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