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You are analyzing a stock that has the following returns given the various states of economy. State of Economy Probability Return Recession 0.12 -5.70 Normal

You are analyzing a stock that has the following returns given the various states of economy. State of Economy Probability Return Recession 0.12 -5.70 Normal 0.68 7.80 Boom 0.2 14.00 What is the expected return on this stock? (Round your answer to the nearest hundredth; two decimal places)

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