What is your expected rate of return on this stock

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Reference no: EM131087827

You recently purchased a stock that is expected to earn 11 percent in a booming economy, 7 percent in a normal economy and lose 3 percent in a recessionary economy. There is a 13 percent probability of a boom, a 74 percent chance of a normal economy. What is your expected rate of return on this stock?

Reference no: EM131087827

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