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, 9 percent in a normal economy, and lose 4 percent in a recessionary economy. There is a 18 percent probability of a boom, a 60 percent chance of a normal economy, and a 22 percent chance of a recession. What is your expected rate of return on this stock?

Reference no: EM131022566

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