Question: A stock is expected to return 11% in a normal economy, 19% if the economy booms, and lose 8% if the economy moves into

A stock is expected to return 11% in a normal economy, 19%

A stock is expected to return 11% in a normal economy, 19% if the economy booms, and lose 8% if the economy moves into a recessionary period. Economists predict a 65% chance of a normal economy, a 25% chance of a boom, and a 10% chance of a recession. What is the expected return on the stock?

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