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 34%

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

Economic State Probability Return
Fast Growth .2 34%
Slow Growth .7 14%
Recession .1 -29%

19.0%

16.0%

13.7%

19.5%

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