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What is the expected return for the following stock? State Probability Return Average 0.50 20% Recession 0.30 10% Depression 0.20 -20% 1.00 0.055 = 5.50%

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What is the expected return for the following stock? State Probability Return Average 0.50 20% Recession 0.30 10% Depression 0.20 -20% 1.00 0.055 = 5.50% O 0.080 = 8.00% 0.095 = 9.50% 0.090 = 9.00% O 0.110 - 11.00%

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