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Expected return Samuel estimates that there are three possible return outcomes for a stock he is considering for purchase. He thinks that there is a
Expected return Samuel estimates that there are three possible return outcomes for a stock he is considering for purchase. He thinks that there is a 45% chance the economy will boom and his stock will return 22%, a 8% chance the economy will continue at its current pace and the stock will return 9% and a 47% the economy will fall into a recession and the stock will yield -4%. Given this, what is Samuels expected return on this stock he is considering for purchase?
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