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Probability Economic Conditions Return 0.3 Recessionary -8% 0.6 Mild Recovery 2% 0.1 Booming 10% Consider the probability distribution of returns for Stock Q shown above.

Probability Economic Conditions Return 0.3 Recessionary -8% 0.6 Mild Recovery 2% 0.1 Booming 10% Consider the probability distribution of returns for Stock Q shown above. What is the expected return of Stock Q? -0.2% 6.67% 4.6% 1.33%

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