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Assume that the economy has an 3 0 % chance of booming, a 3 0 % chance of being normal, and being recessionary the remainder

Assume that the economy has an 30% chance of booming, a 30% chance of being normal, and being recessionary the remainder of the time. A stock is expected to return 24.7% in a boom, 11% in a normal economy, and -10.42% in a recession. What is the expected return on the stock?

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