Question: Expected Return Compute the expected return given these three economic states, their likelihoods, and the potential returns: Economic State Probability Return Fast Growth .2 30.0%

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

Economic State Probability Return
Fast Growth .2 30.0%
Slow Growth .5 6.00%
Recession .3 -2.00%

Multiple Choice

  • 8.4%

  • 19.0%

  • 17.0%

  • 9.6%

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