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5 There is 5 percent probability of recession, 20 percent probability of a poor economy, 48 percent probability of a normal economy, and 27 percent
5 There is 5 percent probability of recession, 20 percent probability of a poor economy, 48 percent probability of a normal economy, and 27 percent probability of a boom. A stock has returns of -20.7 percent, 4.3 percent, 12.1 percent, and 27.8 percent in these states of the economy, respectively. What is the stock's expected return? 1.2 points References Multiple Choice O 5.88% 12.04% 14.17% 13.14% 15.21%
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