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A stock has an expected return of 10.62 percent. Based on the following information, what is the stock's return in a boom state of the
A stock has an expected return of 10.62 percent. Based on the following information, what is the stock's return in a boom state of the economy? State of Economy Probability of State of Economy Rate of Return if State Occurs Recession .29 ? 10.5 % Normal .32 12.0 % Boom .39 ?
22.04%
25.19%
26.34%
23.62%
27.48%
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