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. Use the following information to calculate your company's expected return State Probability Return Boom 20%...

. Use the following information to calculate your company's expected return State Probability Return Boom 20% 0.34 Normal 60% 0.10 Recession 20% -0.16 Round to two decimal places ANSWER:

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Ans 0.10

State Probability (i) Return (ii) Probability * Return (i)* (ii)
Boom 20.00%                     0.34                                      0.07
Normal 60.00%                     0.10                                      0.06
Recession 20.00%                   (0.16)                                     (0.03)
Total                                      0.10

jeff jeffy answered 3 hours ago
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