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Use the following information on states of the economy and stock returns to calculate the expected return for Dingaling Telephone: (Do not round intermediate calculations.

Use the following information on states of the economy and stock returns to calculate the expected return for Dingaling Telephone: (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

State of Economy Probability of State of Economy Security Return If State Occurs
Recession 0.35 -7.5 %
Normal 0.2 8
Boom ? 15

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