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State of the World Probability of occurrence Asset Returns in % A B Recession 0.25 7 2 Normal 0.50 8 6 Expansion 0.25 9 10

State of the World
Probability of occurrence
Asset Returns in %
A
B
Recession
0.25
7
2
Normal
0.50
8
6
Expansion
0.25
9
10
What is the return of stock A
Select one:
a. 4%
b. 8%
c. 6%
d. 0

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