Question: 1. Calculate the expected return for a stock, given the following information about its returns in different states of the economy. State of economy Probability

1. Calculate the expected return for a stock, given the following information about its returns in different states of the economy.

State of economy Probability Stock return
Recession 0.16 -0.16
Normal 0.41 0.14
Boom -- 0.27

Enter return in percents, not in decimals.

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