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5. You have a portfolio which is comprised of 70 percent of stock A and 30 percent of stock B. What is the expected rate

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5. You have a portfolio which is comprised of 70 percent of stock A and 30 percent of stock B. What is the expected rate of return on this portfolio? State of Probability of State Rate of Return if State Occurs Economy of Economy Stock A Stock B Boom .10 17% 9% Normal .90 8% 22%

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