Question: Consider the information contained in the table below to help answer the next question: State of Economy Probability Return (Return-Expected Return) 2 Expansion 30% 30%

Consider the information contained in the table below to help answer the next question: State of Economy Probability Return (Return-Expected Return) 2 Expansion 30% 30% 0.0264065 Normal 55% 10% 0.00140625 Recession 15% -5% 0.03515625 What is this stock's expected return? 13.75 percent. 10.00 percent. 9.68 percent. 15.25 percent. 11.67 percent

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