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You recently purchased a stock that is expected to earn 28 percent in a booming economy, 17 percent in a normal economy, and lose 2
You recently purchased a stock that is expected to earn 28 percent in a booming economy, 17 percent in a normal economy, and lose 2 percent in a recessionary economy. There is a 27 percent probability of a boom, a 65 percent chance of a normal economy, and a 8 percent chance of a recession. What is your expected rate of return on this stock? 14.33 percent 18.45 percent 9.22 percent O 15.00 percent O 2.33 percent
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