6) Consider the following information: State of Economy Recession Normal Boom Probability of State of...
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6) Consider the following information: State of Economy Recession Normal Boom Probability of State of Economy 0.11 0.65 0.24 Rate of Return if State Occurs -0.07 0.14 0.31 Calculate the expected retum. 16.40% 2.53% 14.98% 15.77% 16.56%
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