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You recently purchased a stock that is expected to earn 12% in a booming economy,...

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Finance

You recently purchased a stock that is expected to earn 12% in a booming economy, 8% in a normal economy and lose 5% in a recessionary economy. There is a 15% probability of a boom, a 75% chance of a normal economy, and a 10% chance of a recession. What is your expected rate of return on this stock?

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\begin{tabular}{|c|c|c|} \hline Year & Earnings & Quarter \\ \hline 2019 & 52 & 1 \\...