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 19%

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

Economic State Probability Return
Fast Growth .2 19%
Slow Growth .7 10%
Recession .1 -25%

9.7%

4.0%

8.3%

13.3%

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