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2. Consider the following information. You have decided that any consumer sentiment value in excess 105 is very good year, while a value less than

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2. Consider the following information. You have decided that any consumer sentiment value in excess 105 is very good year, while a value less than 95 is a very bad year. Anything in the middle is considered average. You feel there is a 30% chance that next year will be very good, and a 45% chance the value will be very bad. Given this, what expected return would you put on your portfolio? (15pts)

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