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You recently purchased a stock that is expected to earn 12 percent in a booming economy, 9 percent in a normal economy, and lose 15

You recently purchased a stock that is expected to earn 12 percent in a booming economy, 9 percent in a normal economy, and lose 15 percent in a recessionary economy. The probabilities of a boom, a normal economy, and a recession are 18, 75, and 7 percent, respectively. What is your expected rate of return on this stock?

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