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Choose one of the following. (Systematic or unsystematic or market) risk can be eliminated by diversification. The common stock of CrisisGreat is expected to earn
Choose one of the following. (Systematic or unsystematic or market) risk can be eliminated by diversification.
The common stock of CrisisGreat is expected to earn 10 percent in a recession, 7 percent in a normal economy, and lose 5 percent in a booming economy. The probability of a boom is 14 percent while the probability of a recession is 8 percent. What is the expected rate of return on this stock? ____ %
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