Question: Problem 10-1 Expected Return (LG10-1) Compute the expected return given these three economic states, their likelihoods, and the potential returns: (Round your answer to 2

Problem 10-1 Expected Return (LG10-1)

Compute the expected return given these three economic states, their likelihoods, and the potential returns: (Round your answer to 2 decimal places.)

Economic State Probability Return
Fast growth 0.30 45 %
Slow growth 0.33 23
Recession 0.37 37

Expected return %

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