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Rosita owns a stock with an overall expected return of 1 2 . 2 0 % . The economy is expected to either boom or

Rosita owns a stock with an overall expected return of 12.20%. The economy is expected to either boom or be normal. There is a 40% chance the economy will boom. If the economy booms, this stock is expected to return 14%. What is the expected return on the stock if the economy is normal?

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