Question: Compute the expected return given these three economic, their likelihoods, and the potential returns: Economic State Probability Return Fast Growth .3 40% Slow Growth .4

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

Economic State Probability Return

Fast Growth .3 40%

Slow Growth .4 15%

Recession .3 -15%

A) 18.3 B) 22.5 C) 40.0 D) 13.5

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