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The stock of Uptown Men's Wear is expected to produce the following returns given the various states of the economy. What is the expected return on this stock? Probabilities: Recession:0.35 Normal:0.4 Boom:0.25 Returns: Recession:-10% Normal:14% Boom:25%

6.40%
16%
8.35%
12.87%
7.05%

Note: Explain all steps comprehensively.

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