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Calculate the expected return on stock State of the economy Probability of the state Percentage return on stock Economic Recession 25% -8.5% Boom 12% 15.6%

Calculate the expected return on stock

State of the economy Probability of the state Percentage return on stock

Economic Recession 25% -8.5%

Boom 12% 15.6%

Steady Economic growth 63% 3.4%

Round the answers to two decimal places. All work needs to be shown!

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