Three economic states-their likelihoods and potential return

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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  

Reference no: EM13919358

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