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With these numbers, figure out what the expected return is on the stock: Recession probability = 25% Recession price per share = $10/share Normal probability

With these numbers, figure out what the expected return is on the stock:

Recession probability = 25%

Recession price per share = $10/share

Normal probability = 40%

Normal price per share = $15/share

Boom probability = 35%

Boom price per share = $25/share

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