Question: Compute the expected return given these three economic states, their likelihoods, and the potential returns: (Round your answer to 1 decimal place.) Economic State Probability

Compute the expected return given these three economic states, their likelihoods, and the potential returns: (Round your answer to 1 decimal place.)

Economic State

Probability

Return

Fast growth

0.5

40 %

Slow growth

0.2

Recession

0.3

Expected return

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