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Question
Stock A has the following returns for various states of the economy:| State of the Economy | Probability | Stock A's Return |
| Recession | 10% | -30% |
| Below Average | 20% | -2% |
| Average | 40% | 10% |
| Above Average | 20% | 18% |
| Boom | 10% | 40% |
Stock A's expected return is
A) 5.4%.
B) 7.2%.
C) 8.2%.
D) 9.6%
Answer
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