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You recently purchased a stock that is expected to earn 30% in a booming economy. 9% normal economy, and lose 33% in a recessionary economy.

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You recently purchased a stock that is expected to earn 30% in a booming economy. 9% normal economy, and lose 33% in a recessionary economy. There is a 5% probability of a boom and a 75% chance of a normal economy. What is your expected rate of return on this stock? -3.40% -2.25% 2.60% 1.65% 3.50%

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