You have been given this probability distribution for the holding-period return for a stock. What is the
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Question:
You have been given this probability distribution for the holding-period return for a stock. What is the expected return for the stock return?
Round your answer to 4 decimal places. For example, if your answer is 3.205%, then please write down 0.0321.
State of economy | Probability | return |
Boom19 | 40% | 19% |
Normal | 35% | 11% |
Recession | 25% | -9% |
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