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You are given the following: Bear market probability 20%, Stock X return if bear market -20% Normal market probability 60%, Stock X return if normal

You are given the following: Bear market probability 20%, Stock X return if bear market -20% Normal market probability 60%, Stock X return if normal market 12% Bull market probability 20%, Stock X return if bull market 30% The expected return on Stock X is _____.

9.2%

7.333%

12%

22%

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