Consider an economy with three possible states: bad, normal,…
Consider an economy with three possible states: bad, normal, and good. The probability of each state is given in the array of probabilities “p” below. The payoff of a risky stock in each state is given in the array R. p = np.array() R = np.array(, , ]) If we want to compute the expected return on this risky asset, what is the command line we should execute in Python?