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What is the expected rate of return on the stock

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Reference no: EM132512226

Question 1: You recently purchased a stock that is expected to earn 12 % in a booming economy, 8 % in a normal economy and lose 5 % in a recessionary economy. There is a 15 % probability of a boom, a 75 % chance of a normal economy, and a 10 % chance of a recession. What is your expected rate of return on this stock?

Reference no: EM132512226

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