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Assume that there are three stocks, A , B , and C , and that you can either invest in these stocks or short sell
Assume that there are three stocks, A B and C and that you can either invest in these stocks or short sell them. There are also three possible states of nature for economic growth in the upcoming year. strong, moderate, or weak. The returns for the upcoming year on stocks and for each of these states of nature are given below:
tableState of NatureStockStrong Growth,Moderate Growth,Weak GrowthA
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