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Stock A has the following returns for various states of the economy: State of the Economy Probability Stock A's Return Recession 5% 15% Below Average

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Stock A has the following returns for various states of the economy: State of the Economy Probability Stock A's Return Recession 5% 15% Below Average 25% -2% Average 40% 9% Above Average 25% 14% Boom 5% 30% Stock A's expected return is: 8.35% 8.85% 7.35% 6.60%

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