The stock of Uptown Men's Wear is expected to produce the following returns, given the various...

  

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The stock of Uptown Men's Wear is expected to produce the following returns, given the various states of the economy. What is the expected return on this stock? State of Economy Rate of Return Probability of State of Economy Recession 0.20 -0.10 Normal 0.75 0.14 Boom 0.05 0.22 Year Returns of Stock A Returns of Stock B 2011 -17.70% -17.40% 2012 27.75 18.40 2013 10.75 21.50 2014 -1.00 -6.70 2015 35.00 26.90 What is the average or expected return for Stock A? The stock of Uptown Men's Wear is expected to produce the following returns, given the various states of the economy. What is the expected return on this stock? State of Economy Rate of Return Probability of State of Economy Recession 0.20 -0.10 Normal 0.75 0.14 Boom 0.05 0.22 Year Returns of Stock A Returns of Stock B 2011 -17.70% -17.40% 2012 27.75 18.40 2013 10.75 21.50 2014 -1.00 -6.70 2015 35.00 26.90 What is the average or expected return for Stock A?

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