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You are considering buying stock A. If the economy grows rapidly, you may earn 30% on the investment, while a declining economy could result in
You are considering buying stock A. If the economy grows rapidly, you may earn 30% on the investment, while a declining economy could result in a 20% loss. Slow economic growth may generate a return of 6%. If the probability is 15 % for rapid growth, 20% for a declining economy , and 65% for slow growth, what is the expected return on this investment?
Please if you can help me, be detailed in your answer. Thank you:-)
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