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you just graduated from college and purchased a stock that is expected to earn 36 percent in a booming economy, 9 percent in a normal
you just graduated from college and purchased a stock that is expected to earn 36 percent in a booming economy, 9 percent in a normal economy, and lose 26 percent in a recessionary economy. There is a 9% probability of a boom and a 76% chance of a normal economy. What is your expected rate of return on this stock?
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