What is your expected rate of return on stock

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Reference no: EM13934400

You recently purchased a stock that is expected to earn 25 percent in a booming economy, 14 percent in a normal economy, and lose 5 percent in a recessionary economy. There is a 23 percent probability of a boom, a 62 percent chance of a normal economy, and a 15 percent chance of a recession. What is your expected rate of return on this stock?

Reference no: EM13934400

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