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Monica recently purchased a stock that is expected to earn 1 3 percent in a booming economy, 8 percent in a normal economy and lose

Monica recently purchased a stock that is expected to earn 13 percent in a booming economy, 8 percent in a normal economy and lose 6 percent in a recessionary economy. Monica believes that there is a 13 percent probability of a boom and a 74 percent chance of a normal economy. Calculate Monica's expected return on this stock.
Multiple Choice
8.39
6.83
6.00
7.48
6.62
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