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The expected return on a stock given various states of the economy is equal to the: A) Arithmetic average of the returns for each economic

The expected return on a stock given various states of the economy is equal to the:

A) Arithmetic average of the returns for each economic state

B) highest expected return given any economic state

C) Return for the economic state with the highest probability of occurrence

D) Summation of the individual expected rates of return

E) Probability weighted average of the returns for each economic state

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