Question: A stock is expected to return 10% in a normal economy, 14% if the economy booms, and lose 8% if the economy moves into a

 A stock is expected to return 10% in a normal economy,

A stock is expected to return 10% in a normal economy, 14% if the economy booms, and lose 8% if the economy moves into a recessionary period. Economists predict a 67% chance of a normal economy, a 25% chance of a boom, and a 8% chance of a recession. The expected return on the stock is 16

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