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There is 8 percent probability of recession, 17 percent probability of a poor economy, 47 percent probability of a normal economy, and 28 percent probability
There is 8 percent probability of recession, 17 percent probability of a poor economy, 47 percent probability of a normal economy, and 28 percent probability of a boom. A stock has returns of -19 percent, 2.6 percent, 10.4 percent and 26.1 percent in these states of the economy, 3) respectively. What is the stock's expected return? A) 12.64% B) 14.16% C) 5.03% D) 11.12% E) 10.19% +
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