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You recently purchased a stock that is expected to earn 1 0 percent in a booming economy, 3 percent in a normal economy, and lose

You recently purchased a stock that is expected to earn 10 percent in a booming economy, 3 percent in a normal economy, and lose 4.5 percent in a recessionary economy. The probability of a booming economy is 13 percent while the probability of a normal economy is 69 percent. What is your expected rate of return on this stock?
Multiple Choice
2.56%
2.18%
2.83%
0.38%
4.18%

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