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Stock XYZ is expected to earn 25% in a booming economy, 12% in an average economy, and 6% in a recessionary economy. If the probability

Stock XYZ is expected to earn 25% in a booming economy, 12% in an average economy, and 6% in a recessionary economy. If the probability of a booming economy is 0.2, the probability of an average economy is 0.5, and the probability of a recessionary economy is 0.3, what is the expected return on Stock XYZ?

14.7% 13.2% 14.3% 11.8% 12.8%

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