Question: What is the expected return on this stock given the following information? The probability of an economic expansion is 25%, the probability of a

What is the expected return on this stock given the following information?

What is the expected return on this stock given the following information? The probability of an economic expansion is 25%, the probability of a recession is 75%. If there is an economic expansion, the stock return will be 12%, if there is a recession the return will be 4%.

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