There is 14 percent probability of recession, 11 percent probability of a poor e...
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There is 14 percent probability of recession, 11 percent probability of a poor economy, 47 percent probability of a normal economy, and 28 percent probability of a boom. A stock has returns of −19.6 percent, 3.2 percent, 11 percent, and 26.7 percent in these states of the economy, respectively. The stock's expected return is:
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