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There is 13 percent probability of recession, 12 percent probability of a poor economy, 50 percent probability of a normal economy, and 25 percent probability

There is 13 percent probability of recession, 12 percent probability of a poor economy, 50 percent probability of a normal economy, and 25 percent probability of a boom. A stock has returns of 19.9 percent, 3.5 percent, 11.3 percent and 27 percent in these states of the economy, respectively. What is the stock's expected return?

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15.41%

10.23%

9.38%

12.82%

5.48%

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