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Suppose your expectations regarding the stock market are as follows: Probability HPR State of the Economy Boom Normal growth Recession 0.3 0.4 0.3 44% 14

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Suppose your expectations regarding the stock market are as follows: Probability HPR State of the Economy Boom Normal growth Recession 0.3 0.4 0.3 44% 14 -16 Use the above forecasted distribution to compute the expected return of the stock market. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Expected Return: %

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