4- Consider the following two investments Stock A Stock B Economy Probability Return Return Recession .25 -30%
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Question:
4-
Consider the following two investments
| Stock A | Stock B | ||
| Economy | Probability | Return | Return |
| Recession | .25 | -30% | -5% |
| Mild Growth | .20 | 2% | 3% |
| Steady Growth | .35 | 10% | 5% |
| Rapid Growth | .20 | 25% | 8% |
What is the expected return of Stock B? (round to two digits, e.g. 5.18%)
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