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ABC Inc believes the following probability distribution exists for its stock. What is the stock's expected return? State of Probability of Expected Return the Economy

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ABC Inc believes the following probability distribution exists for its stock. What is the stock's expected return? State of Probability of Expected Return the Economy State Occurring if this State Occurs Rapid Growth 0.35 30% Normal Growth 0.40 12% Recession 0.25 -11% O 10.77% O 11.45% 11.85% 12.55%

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