Question: 29 1.5 points A stock is expected to return 12% in a normal economy, 20% if the economy booms, and lose 7% if the economy

29 1.5 points A stock is expected to return 12% in

29 1.5 points A stock is expected to return 12% in a normal economy, 20% if the economy booms, and lose 7% if the economy moves into a recessionary period. Economists predict a 60% chance of a normal economy, a 30% chance of a boom, and a 10% chance of a recession. What is the expected return on the stock? 12.90% 12.50% 11.23% 11.10%

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