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

Roenfeld Corp. believes the following probability distribution exists for its stock. What is the expected return of the company's stock?

State of the Economy	Probability	Expected Return
Boom	0.45	25%
Normal	0.50	15%
Recession	0.05	5%

19.0%

21.5%

23.0%

25.0%

27.5%

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