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You recently purchased a stock that is expected to earn 22 percent in a booming economy, 9 percent in a normal economy, and lose 10

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You recently purchased a stock that is expected to earn 22 percent in a booming economy, 9 percent in a normal economy, and lose 10 percent in a recessionary economy. There is a 5 percent probability of a boom and a 65 percent chance of a normal economy. What is your expected rate of return on this stock? Answer: 1

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