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Calculate the expected return for the following stock? State (i) Probability (pi) Return (Ri) ------------------------------------------------------ Normal .60 .25 Recession .30 .05 Depression ?? .35 A.

Calculate the expected return for the following stock?

State (i) Probability (pi) Return (Ri)

------------------------------------------------------

Normal .60 .25

Recession .30 .05

Depression ?? .35

A. 8%

B. 9%

C. 11%

D. 13%

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