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Suppose a stock will have a return of -10% during a recession, and a return of 20% with normal market condition. If over the next
Suppose a stock will have a return of -10% during a recession, and a return of 20% with normal market condition. If over the next year, the chance of recession is 40%, and the chance of normal condition is 60%. The stock's expected return next year is ______ %.
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