Question: Suppose you have predicted the following returns for Apple Inc. stock in three possible states of nature. What is the expected return? State Probability of

Suppose you have predicted the following returns for Apple Inc. stock in three possible states of nature. What is the expected return?

State Probability of State Apple Inc. Returns

Boom 0.4 0.11

Normal 0.4 0.03

Bust - 0.04

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