What is your expected rate of return on this stock

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Reference no: EM13848368

You recently purchased a stock that is expected to earn 18 percent in a booming economy, 13 percent in a normal economy, and lose 4 percent in a recessionary economy. There is a 21 percent probability of a boom, a 68 percent chance of a normal economy, and a 11 percent chance of a recession. What is your expected rate of return on this stock?

Reference no: EM13848368

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