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What is the expected return of the stock

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Reference no: EM133062545

An oil exploration firm is currently searching for oil. Their probability of finding oil this year is 70% and if they hit oil we expect the stock to return 66%. If they do not hit oil we expect the stock to return -5%. What is the expected return of the stock? Give your answer to two decimal places (9.99%)

Reference no: EM133062545

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