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Calculate the expected return for a stock, given the following information about its returns in different states of the economy. State of economy Probability Stock
Calculate the expected return for a stock, given the following information about its returns in different states of the economy.
State of economy | Probability | Stock return |
---|---|---|
Recession | 0.16 | -0.25 |
Normal | 0.43 | 0.13 |
Boom | -- | 0.24 |
Enter return in percents, not in decimals.
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