Question: Calculate the expected return for a stock, given the following information about its returns in different states of the economy. State of economy Probability Stock

Calculate the expected return for a stock, given the following information about its returns in different states of the economy.

State of economy Probability Stock return
Recession 0.16 -0.25
Normal 0.43 0.13
Boom -- 0.24

Enter return in percents, not in decimals.

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