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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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