HI
Expected return = State A Prob.* State A return + State B prob* State B return + State C prob* State C return
= 0.21*(-0.04) + 0.45*0.14 + 0.34*0.25
= 0.1396 = 0.14
Thanks
Probability of State of Rate of Return if State State of Economy Economy Occurs Recession .21...
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