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There is a 25% probability of a below-average economy and a 75% probability of an average economy. If there is a below-average economy, Stock B
There is a 25% probability of a below-average economy and a 75% probability of an average economy. If there is a below-average economy, Stock B will have returns of -9%. If there is an average economy, Stock B will have returns of 8%. What is the expected return of Stocks B. (4 decimals - 12.34% should be 0.1234)
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