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The common stock of Omega International Corp. is expected to earn 13% in a recession, 6% in a normal economy and lose 4% in a

The common stock of Omega International Corp. is expected to earn 13% in a recession, 6% in a normal economy and lose 4% in a booming economy. The probability of a boom in the economy is 5%, while the probability of a recession is 45%. What is the expected rate of return on this stock?

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