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A stocks returns have the following distribution demand for

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Reference no: EM13570612

A stock's returns have the following distribution:

demand for the company's products probability of this demand occurring rate of return if this demand occurs

Weak 0.1 -40%
Below average 0.1 -8
Average 0.4 10
Above average 0.2 28
Strong 0.2 62

a. Calculate the stock's expected return.

Reference no: EM13570612

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