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A stock has the following probability distribution: If economy is good (the probability is 25%), its expected stock return is 20%; if economy is on
A stock has the following probability distribution: If economy is good (the probability is 25%), its expected stock return is 20%; if economy is on average (the probability is 50%), its expected stock return is 10%; if economy is bad (the probability is 25%), its expected return is -20%. Find the expected rate of return for the stock
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