What is the expected return rate? Compute the expected return given these three economic states, their likelihoods, and...

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Question

Compute the expected return given these three economic states, their likelihoods, and the potential returns: (Round your answ

What is the expected return rate?

business finance

Answer 1

Answer #1

Expected return=Respective return*Respective probability

=(0.29*30)+(0.41*3)+(0.3*-27)

=1.83%

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Answer 2

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