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Stock Marion provides -8.9% returns in recessions, 12.1% in a normal economy and 27.8% in expansions (boom). Based on this and the attached information on
Stock Marion provides -8.9% returns in recessions, 12.1% in a normal economy and 27.8% in expansions (boom). Based on this and the attached information on the probabilities of various states of the economy, what is the expected returns for stock Marion?
State of Probability of State EconomyRecessionNormalBoomofEconomy.20.50.30Step by Step Solution
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