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15) Your portfolio needs an additional stock. You have narrowed the choice to either Stock Y or Stock Z. What is the difference between the
15) Your portfolio needs an additional stock. You have narrowed the choice to either Stock Y or Stock Z. What is the difference between the expected returns, assuming the information below? Rate of Return If State Occurs State of the Economy Probability of State of the Economv Stock Y 12% 22% Stock Z 17% -31% Normal 45% Recession 55% A) 2.70 percent B) 13.55 percent C)-0.85 percen D) 13.45 percent E) 3.05 percent
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