What is your expected rate of return on this stock

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You recently purchased a stock that is expected to earn 14 percent in a booming economy, 8 percent in a normal economy, and lose 6 percent in a recessionary economy. There is a 14 percent probability of a boom, a 76 percent chance of a normal economy, and a 10 percent chance of a recession. What is your expected rate of return on this stock?

Reference no: EM13913462

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