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An analyst has predicted the following returns for Stock A and Stock B in three possible states of the economy. table [ [ State
An analyst has predicted the following returns for Stock A and Stock B in three possible states of the economy.
tableStateProbability,ABBoomNormalRecession
a What is the probability of a recession? Round your answer to decimal places.
tableProbability
b Calculate the expected return for Stock A and Stock BRound your answers to decimal places.
tableExpected ReturnStocks A
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