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12.1 The common stock of Manchester & Moore is expected to earn 28 percent in a boom economy, 11 percent in a normal economy, and
12.1 The common stock of Manchester & Moore is expected to earn 28 percent in a boom economy, 11 percent in a normal economy, and lose 24 percent in a recession. The probability of a recession is 25 percent while the probability of a boom economy is 45 percent. What is the expected rate of return on this stock? Hint: First find the probability of normal economy. Only Enter the Final Answer in Decimals.
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