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The stock of Hogwarts Inc. is expected to lose 10% in a recession and earn 17% in a boom. The probability of a recession and

The stock of Hogwarts Inc. is expected to lose 10% in a recession and earn 17% in a boom. The probability of a recession and a boom is 20% and 80% respectively. What is the expected return of this stock?

(Answer in 4 decimal places)

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