Find the expected return based on his


An investor is trying to estimate his expected return on an investment in the next 12 months. He believes the economy will be one of three states: Bad, Average, or Great. He has estimated the probability of each state and the return he will get in each environment. OUTCOME: Probability Return BAD 0.34 -17.00% AVERAGE 0.48 5.00% GREAT 0.18 35.00% Find the expected return based on his assumptions.

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Financial Management: Find the expected return based on his
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