What is the expected rate of return on this stock

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Reference no: EM13263533

The Rotor Co. stock is expected to earn 16% in a recession, 7% in a normal economy, and lose 3% in a booming economy. The probability of a boom is 20% while the probability of a normal economy is 55% and the chance of a recession is 25%. What is the expected rate of return on this stock?

Reference no: EM13263533

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