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7. The following table provides the rates of return of 3 stocks under different states of the market: rate of return % stock price

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7. The following table provides the rates of return of 3 stocks under different states of the market: rate of return % stock price recession average boom 1 10 -15 20 30 2 15 25 10 -10 3 50 12 15 12 Find an arbitrage portfolio using these 3 stocks.

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