Calculate the expected rate of return on stock

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You recently purchased a stock that is expected to increase by 19 percent in a booming economy, increase by 12 percent in a normal economy, and decrease by 18 percent in a recessionary economy. The probability of a boom economy is 20 percent while the probability of a normal economy is 58 percent. What is your expected rate of return on this stock?

Reference no: EM133113678

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