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A stock is expected to return 2 2 % in a normal economy, return 3 0 % if the economy booms, and lose 1 9
A stock is expected to return in a normal economy, return if the economy booms, and lose if the economy moves into a recessionary period. Economists predict a chance of a normal economy, a chance of a boom, and a chance of a recession. What is the expected return on the stock?
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