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QUESTION 1 Suppose your expectations regarding the stock market are as follows: State of the Economy Boom Normal growth Recession Probability HPR 0.3 0.4 0.3

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QUESTION 1 Suppose your expectations regarding the stock market are as follows: State of the Economy Boom Normal growth Recession Probability HPR 0.3 0.4 0.3 44% 14 -16 What is the expected return on stocks? (Do NOT enter % sign. If your answer is 0.0678 or 6.78% enter only 6.78. Round your answer to 2 decimal places.)

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