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A stock is expected to return 15% in an economic boom, 10% in a normal economy, and -5% in a recessionary economy. Which one of
A stock is expected to return 15% in an economic boom, 10% in a normal economy, and -5% in a recessionary economy. Which one of the following will increase the overall expected rate of return on this stock?
A) An increase in the probability of a recession occurring
B) A decrease in the probability of an economic boom
C) An increase in the probability of an economic boom
D) A decrease in the rate of return in a recessionary economy
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