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You are considering to invest in the following stock: which is expected to earn 16% in a booming economy, 10% in a normal economy, and

You are considering to invest in the following stock: which is expected to earn 16% in a booming economy, 10% in a normal economy, and -5% in a recession. The probability of a boom is 19%, and probability of a recession is 9%. What is the expected rate of return on this stock?

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