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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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