Question: You have been given this probability distribution for the return for a stock: State of the Economy Probability Return Boom 0.30 22% Normal growth 0.20

You have been given this probability distribution for the return for a stock:

State of the Economy Probability Return

Boom 0.30 22%

Normal growth 0.20 11%

Recession 0.50 -9%

What is the expected return of the stock?

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