Question: Compute the expected return of an asset given these three economic states, their likelihoods, and the potential returns: Economic State Probability Return Fast Growth 20.00%

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

Economic State Probability Return

Fast Growth 20.00% 30.00%

Slow Growth 50.00% 6.00%

Recession 30.00% -2.00%

8.40%

11.33%

12.65%

15.47%

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