Question: A stock is expected to return 9% in a normal economy, 14% if the economy booms, and lose 5% if the economy moves into a
A stock is expected to return 9% in a normal economy, 14% if the economy booms, and lose 5% if the economy moves into a recessionary period. Economist predict a 69% chance of a normal economy, a 18% chance of a boom and a 13% chance of a recession. The expected return on the stock is 9
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