Question: Problem 10-2 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 10-2 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 0.31 32 %
Slow growth 0.43 20
Recession 0.26 33

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