If the probability for rapid growth is 15 or 20 for decline


You are considering buying stock A. If the economy grows rapidly, you may earn 30% on your investment, while a declining economy could result in a 20% loss. Slow growth may generate a return of 6%. If the probability for rapid growth is 15% or 20% for decline, and 65 % chance for slow growth, what is the expected return on this investment?

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Finance Basics: If the probability for rapid growth is 15 or 20 for decline
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