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You are analyzing a stock that has the following returns given the various states of economy. State of Probability Return Economy Recession 0.12 -2.40 Normal

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You are analyzing a stock that has the following returns given the various states of economy. State of Probability Return Economy Recession 0.12 -2.40 Normal 0.68 8.00 Boom 0.2 14.40 What is the expected return on this stock? (Round your answer to the nearest hundredth; two decimal places) Your Answer: Answer units

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