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Roe Corp believes the following probability distribution exists for its stock. What is the expected return on the company's stock? State of the Economy Probability

Roe Corp believes the following probability distribution exists for its stock. What is the expected return on the company's stock? State of the Economy Probability of State Occurring Stock's Expected Return Boom 0.3 20% Normal 0.5 8% Recession 0.2 -6% 6.2% 11% 9.4% 12.5% 8.8%

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