What is the expected return of stocks

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Reference no: EM132072229

The following informtion is for the next two questions. There is a 15% probability of a below-average economy and a 85% probability of an average economy. If there is a below-average economy, Stock A will have returns of -9%. If there is an average economy, Stock A will have returns of 8%. What is the expected return of Stocks A.

Reference no: EM132072229

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