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Q4 Given the information below for stock C in three possible states of the economy, what is its expected return? State Probability of State Return

Q4

Given the information below for stock C in three possible states of the economy, what is its expected return?

State

Probability of State

Return on Stock C

Recession

???

-20%

Normal

0.6

15%

Boom

0.2

25%

10%

9%

8%

7%

6%

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