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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

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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