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There is 20 percent probability of a boom, 40 percent chance of a normal economy, and 40 percent chance of a recession. The stock that

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There is 20 percent probability of a boom, 40 percent chance of a normal economy, and 40 percent chance of a recession. The stock that you recently purchased has the expected retum of 10% in a booming economy, 8% in a normat economy, and 1% in a recessionary economy. What is your expected rate of return on this stock? 6.9% 5.1% 6.2% 5.6%

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