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A stock is expected to generate 20% the company experiences an expansion next year. and -1O% if the economy experiences s recession. The probabiiity of

A stock is expected to generate 20% the company experiences an expansion next year. and -1O% if the economy experiences s recession. The probabiiity of an expansion in the economy is 20% and the probability of a recession is 80%. The expected return of the stock next year is:

-4%

-10%

-2%

3%

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