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You recently purchased a stock that is expected to earn 12 percent in a booming economy, 10 percent in a normal economy and lose 6

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You recently purchased a stock that is expected to earn 12 percent in a booming economy, 10 percent in a normal economy and lose 6 percent in a recessionary economy. There is a 16 percent probability of a boom, a 74 percent chance of a normal economy. What is your expected rate of return on this stock? O 6.00 9.16 O 8.72 O 9.92 O 794

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