Question: Outcome Probability Return Boom 60% 30.4% Normal 25% 15.5% Recession 10% 10.1% Depression 5% 5.7% What is the arithmetic expected return on this asset?

Outcome Probability Return

Boom 60% 30.4%

Normal 25% 15.5%

Recession 10% 10.1%

Depression 5% 5.7%

What is the arithmetic expected return on this asset?

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