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Question regarding the expected rate of return on stock

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Reference no: EM131041343

You recently purchased a stock that is expected to earn 13 percent in a booming economy, 9 percent in a normal economy and lose 5 percent in a recessionary economy. There is a 15 percent probability of a boom, a 75 percent chance of a normal economy. What is your expected rate of return on this stock?

Reference no: EM131041343

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