What is your expected rate of return on this stock

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Reference no: EM131520322

You recently purchased a stock that is expected to earn 31 percent in a booming economy, 17 percent in a normal economy, and lose 8 percent in a recessionary economy. There is a 26 percent probability of a boom, a 66 percent chance of a normal economy, and a 8 percent chance of a recession. What is your expected rate of return on this stock?

Reference no: EM131520322

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