The stock of chocolate galore is expected to produce the, Financial Management

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The stock of chocolate galore is expected to produce the

The stock of Chocolate Galore is expected to produce the following returns, given the various states of the economy.

What is the expected return on this stock?

State of Economy Probability of State of Economy Rate of Return Recession

Recession 3% -4%

Normal 82% 9%

Boom 15% 17%

Please show your work.

a) 7.33 percent b) 9.82 percent c) 11.26 percent d) 11.33 percent

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