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Consider the following information on three stocks in the attached image: Return If State Occurs State of Economy Boom Normal Bust Probability of State of

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Consider the following information on three stocks in the attached image:

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Return If State Occurs State of Economy Boom Normal Bust Probability of State of Economy .25 .40 .35 Rate Stock .32 .24 .02 of A Stock B .22 -.24 Stock C .60 .20 -.40

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