Compute the Expected Return Given These Three Economic States, Their

Compute the expected return given these three economic states, their likelihoods, and the potential returns:
$$\begin{array}{l}\begin{array} { c c r } \text { Eccrorric State }&\text { Probability } & \text { Return } \\\text { fast growth }&0.2 & 23 \% \\\text {slow growth }&0.6 & 14\% \\\text { recession }&0.2 & - 30\%\\\end{array}\end{array}$$

A) 3.5 percent
B) 7.0 percent
C) 7.5 percent
D) 12.5 percent

Correct Answer:

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