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The stock of XYZ is expected to produce the following returns given the various states of the economy. What is the expected return on this
The stock of XYZ is expected to produce the following returns given the various states of the economy. What is the expected return on this stock? If the state of economy is Recession, with the probability of 0.2, the rate of return is -10%. If the state of economy is Normal, with the probability of 0.75, the rate of return is 14%. If the state of economy is Boom, with the probability of 0.05, the rate of return is 22%
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