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Consider the following information: Rate of Return if State Occurs State of Economy Probability of State of Economy Stock A Stock B Stock C Boom

Consider the following information: Rate of Return if State Occurs State of Economy Probability of State of Economy Stock A Stock B Stock C Boom .30 .19 .43 .24 Good .20 .17 .17 .14 Poor .10 .04 .14 .03 Bust .40 .16 .22 .11 a. Your portfolio is invested 25 percent each in Stocks A and C and 50 percent in Stock B. What is the expected return of the portfolio?

Expected return:____________%

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