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Show work please not on excel. CHAPTER 11 Risk and Retur 6. Calculating Expecte bleulating Expected Return. Based on the following information, calculate th

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Answer #1

Expected return = sum of (probability of state * return of state)

= 0.15 * -0.09 + 0.6 * 0.11 + 0.25 * 0.3

= 0.1275

= 12.75%

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