You recently purchased a stock that is expected to earn 10, Finance Basics

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You recently purchased a stock that is expected to earn 10

Question: You recently purchased a stock that is expected to earn 10 percent in a booming economy, 9 percent in a normal economy and lose 3 percent in a recessionary economy. There is a 17 percent probability of a boom, a 75 percent chance of a normal economy. What is your expected rate of return on this stock?

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