Question: A stock is expected to return 12% in a normal economy and -22% in a recession. There is a 55% probability of a recession. What

A stock is expected to return 12% in a normal economy and -22% in a recession. There is a 55% probability of a recession. What is the expected return of this stock?

A. -8.30

B. -6.70

C. -5.40

D. 2.50

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