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Compute the expected return given these three economic states, their likelihoods, and the potential returns: (Round your answer to 1 decimal place.)   Economic State Probability   Return   Fast growth 0.3   40 %   Slow growth 0.4   10     Recession 0.3   –25       EXPECTED RETURN              %

Compute the expected return given these three economic states, their likelihoods, and the potential returns: (Round your answer to 1 decimal place.)   Economic State Probability   Return   Fast growth 0.3   40 %   Slow growth 0.4   10     Recession 0.3   –25       EXPECTED RETURN              %

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Compute the expected return given these three economic states, their likelihoods, and the potential returns: (Round your answer to 1 decimal place.)
 

Economic State Probability   Return  
Fast growth 0.3   40 %  
Slow growth 0.4   10    
Recession 0.3   –25    
 

EXPECTED RETURN              %

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