Expected Return Compute the expected return given these three economic states, their likelihoods, and the potential returns: Economic StateProbabilityReturn Fast Growth0.3?31.9% Slow Growth0.4?6.95% Recession0.3?-2.95%
A. 11.5 percent
B. 13.2 percent
C. 20.9 percent
D. 18.0 percent
Answer: A
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