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The returns on shares of Lewis Corporation and Martin Corporation are predicted under the following various economic+nditions: State of Economy Return on Lewis Return on
The returns on shares of Lewis Corporation and Martin Corporation are predicted under the following various economic+nditions: State of Economy Return on Lewis Return on Matin Recession -10% -15% Normal +5% +10% Boom +35% +41% a. If each economic state has the same probability of occurring, what are the expected returns of each stock? b. If the economic outlook improves and the probability of a recession drop 10%, the probability of normal growth drops 30%, and the boom rises 60%, what are the expected returns on each stock
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