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ABC Company stock is expected to return 20 percent in a booming economy, 15 percent in a normal economy, and 8 percent in a recession.

ABC Company stock is expected to return 20 percent in a booming economy, 15 percent in a normal economy, and 8 percent in a recession. The probabilities of an economic boom, normal state, or recession are 15 percent, 75 percent, and 10 percent, respectively. What is the expected rate of return on this stock?

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13.45 percent

10.67 percent

12.45 percent

11.91 percent

9.00 percent

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