Question: A stock is expected to return 9% in a normal economy, 13% if the economy booms, and lose if the economy moves into a recessionary
A stock is expected to return 9% in a normal economy, 13% if the economy booms, and lose if the economy moves into a recessionary period. Economists predict a 55% chance of a normal economy, a 22% chance of a boom, and a 23% chance of a recession. The expected return on the stock is
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