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A portfolio's value increases by 1 6 % during a financial boom and by 7 % during normal times. It decreases by 1 2 %

A portfolio's value increases by

16 %

during a financial boom and by

7 %

during normal times. It decreases by

12 %

during a recession. What is the expected return on this portfolio if each scenario is equally likely? Fill in the blanks and round to

4

decimal places, if needed.

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