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A stock is expected to return 996 in a normal economy, 1396 if the economy booms, and lose 596 if the economy moves into a
A stock is expected to return 996 in a normal economy, 1396 if the economy booms, and lose 596 if the economy moves into a recessionary period. Economists predict a 60% chance of a normal economy, a 11 \% chance of a boom, and a 29% chance of a recession. The expected return on the stock is 46
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