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You buy a stock today for $5. Financial analysts estimate that next year, the stock could be $10 with a probability of 0.1 or $8
You buy a stock today for $5. Financial analysts estimate that next year, the stock could be $10 with a probability of 0.1 or $8 with a probability of 0.5 or $1 with a probability 0.4. Find the expected return.
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