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eBook Problem 8-01 You are considering buying stock A. If the economy grows rapidly, you may earn 25 percent on the investment, while a dedining

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eBook Problem 8-01 You are considering buying stock A. If the economy grows rapidly, you may earn 25 percent on the investment, while a dedining economy could result in a 20 percent loss. Slow economic growth may generate a retum of 7 percent. If the probability is 16 percent for rapid growth, 30 percent for a declining economy, and 54 percent for slow growth, what is the expected return on this investment? Round your answer to one decimal place

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