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Calculate the expected return on stock. State of economy Probability of the state Percentage returns on stock Economic Recession 25% -8.5% Boom 12% 15.6% Steady
Calculate the expected return on stock.
| State of economy | Probability of the state | Percentage returns on stock | |
| Economic Recession | 25% | -8.5% | |
| Boom | 12% | 15.6% | |
| Steady economic growth | 63% | 3.4% |
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