Question: What is the expected return on a security given the following information? State of Economy Probability of State Rate of Return 8% Boom 0.5 0.4

What is the expected return on a security given the following information? State of Economy Probability of State Rate of Return 8% Boom 0.5 0.4 Normal 11% Recession 0.1 -9% 3% 7.5% 9.3%

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