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Suppose that there are two possible states of the world next year: boom or recession. Suppose that we forecast the following probabilities of these states

image text in transcribed Suppose that there are two possible states of the world next year: boom or recession. Suppose that we forecast the following probabilities of these states and the returns to two US stocks, CXW (Corrections Corp of America; a prison stock) and AMR (parent of American Airlines). What is the expected return on each stock? Give your answers to four decimal places

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