Question: Compute the expected return given these three economic states, their likelihoods, and the potential returns. Fast growth state: probability is 0.1 and return is 50%.

Compute the expected return given these three economic states, their likelihoods, and the potential returns. Fast growth state: probability is 0.1 and return is 50%. Slow growth state: probability is 0.6 and return is 8%. Recession state: probability is 0.3 and return is -10%.

		6.8%
		12.8%
		16.0%
		22.7%

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