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HIGH FLIER'S COMMON STOCK IS EXPECTED TO RETURN 28% IN BOOM ECONOMY, 14 PERCENT IN A NORMAL ECONOMY, AND -32% IN A RECESSION. THE PROBABILITY
HIGH FLIER'S COMMON STOCK IS EXPECTED TO RETURN 28% IN BOOM ECONOMY, 14 PERCENT IN A NORMAL ECONOMY, AND -32% IN A RECESSION. THE PROBABILITY OF A BOOM IS 20%, OF A NORMAL ECONOMY IS 70%, AND OF A RECESSION IS 10%. WHAT IS THE EXPECTED RETURN ON HIGH FLIER'S COMMON STOCK? A. 9.8% B. 10.9% C. 11.4% D. 12.2% E. 13.6%
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