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20. You recently purchased a stock that is expected to earn 12 percent in a booming economy, 6 percent in a normal economy and lose

20. You recently purchased a stock that is expected to earn 12 percent in a booming economy, 6 percent in a normal economy and lose 6 percent in a recessionary economy. There is a 16 percent probability of a boom, a 76 percent chance of a normal economy. What is your expected rate of return on this stock?

4.99

6.00

6.96

6.00

6.32

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