Calculate expected rate of return on the given stock

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Question: You recently purchased a stock that is expected to earn 12 percent in a booming economy, 9 percent in a normal economy and lose 3 percent in a recessionary economy. There is a 18 percent probability of a boom, a 76 percent chance of a normal economy. What is your expected rate of return on this stock?

Reference no: EM132070930

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