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You recently purchased a stock that is expected to earn 11.3 percent in a booming economy, 8.8 percent in a normal economy, and lose 3.1

You recently purchased a stock that is expected to earn 11.3 percent in a booming economy, 8.8 percent in a normal economy, and lose 3.1 percent in a recessionary economy. Each economic state is equally likely to occur. What is your expected rate of return on this stock?

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