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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 | 9% | -72% |
| Below Average | 16% | -15% |
| Average | 51% | 16% |
| Above Average | 14% | 35% |
| Boom | 10% | 85% |
Stock A's expected return is
A) 9.9%.
B) 12.7%.
C) 13.8%.
D) 16.5%.
Answer
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