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Part $1$

Stock A has the following returns for various states of the$$ economy:

State of the Economy

Probability

Stock$$ A$\text{'}$s Return

Recession

$9\%$

minus$72\%$

Below Average

$16\%$

minus$15\%$

Average

$51\%$

$16\%$

Above Average

$14\%$

$35\%$

Boom

$10\%$

$85\%$

Stock$$ A$\text{'}$s expected return is