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Consider the following information on Stocks I and II: State of Economy State of Economy Stock I Stock II Recession .0.06 0.15 .35 Normal 0.69

Consider the following information on Stocks I and II:

State of Economy State of Economy Stock I Stock II Recession .0.06 0.15 .35 Normal 0.69 0.69 .35 Irrational exuberance 0.25 .43 .45

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