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A stock is expected to return 10% in a normal economy, 15% if the economy booms, and lose 4% if the economy moves into a
A stock is expected to return 10% in a normal economy, 15% if the economy booms, and lose 4% if the economy moves into a recessionary period. Economists predict a 61% chance of a normal economy, a 24% chance of a boom, and a 15% chance of a recession. The expected return on the stock is %
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