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Ripken Iron Works faces the following probability distribution: Stock's Expected State of the economy Probability of state occuring Return if this state occurs Boom 0.25

Ripken Iron Works faces the following probability distribution:

Stock's Expected

State of the economy Probability of state occuring Return if this state occurs
Boom 0.25 25%
Normal 0.50 15
Recession 0.25 16

Based on the above information, what is the expected return? Write your answer as a percentage.

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