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8. You are comparing stock A to stock B. Given the following information, what is the expected return and risk of a portfolio of A

8. You are comparing stock A to stock B. Given the following information, what is the expected return and risk of a portfolio of A and B where you have invested 40% of your wealth in stock A? image text in transcribed

Rate of Return if State of Economy Normal Recession Probability of State of Economy State Occurs Stock A Stock B 45% 55% 14% -22% 17% -28%

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