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2 ) You are considering investing in a stock but you want to evaluate the expected return and riskiness of the stock before you make

2) You are considering investing in a stock but you want to evaluate the expected return and
riskiness of the stock before you make the investment. Based on your best estimates, you have
accumulated the following information:
State Prob Return
Boom .315
Normal .212
Bad .55
Calculate the expected return on this stock

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