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18 What is the expected return on a portfolio that is equally weighted between stocks E and T given the following information? State of Economy
18
What is the expected return on a portfolio that is equally weighted between stocks E and T given the following information?
State of Economy | Probability of State of Economy | Returns if State Occurs | |
Stock E | Stock T | ||
Boom | 0.30 | 20% | 5% |
Normal | 0.70 | 16% | 8% |
Group of answer choices
13.32 percent
11.86 percent
11.13 percent
14.40 percent
12.15 percent
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