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You are analyzing a stock that has the following returns given the various states of economy. Economic state // Probability // Return Recession 0.12. -9.00
You are analyzing a stock that has the following returns given the various states of economy.
Economic state // Probability // Return
Recession 0.12. -9.00
Normal 0.68 8.00
Boom 0.2 14.00
What is the expected return on this stock?
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