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QUESTION 27 What is the Expected Return of the Stock X? State Probability Stock X Return Recession 20% -20% Normal 60% 20% Boom 20% 40%

QUESTION 27 What is the Expected Return of the Stock X? State Probability Stock X Return Recession 20% -20% Normal 60% 20% Boom 20% 40% 14.0% 16.0% 15.0% 20.0%

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