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An investor purchased a stock that is expected to earn 1 4 . 5 percent in a booming economy, 2 . 5 percent in a
An investor purchased a stock that is expected to earn percent in a booming economy, percent in a normal economy, and lose percent in a recessionary economy. The probabilities of a boom, a normal economy, and a recession are and percent, respectively. What is the expected rate of return on the stock
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