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Quantitative Problem: You are given the following probability distribution for CHC Enterprises: State of Economy Probability Rate of return Strong 0 . 1 5 2

Quantitative Problem: You are given the following probability distribution for CHC Enterprises:

State of Economy Probability Rate of return

Strong

0.15 20 %

Normal

0.45 8 %

Weak

0.40 - 4 %

What is the stock's expected return? Do not round intermediate calculations. Round your answer to two decimal places.

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