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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 Recession .20 .05

Consider the following information:

		Rate of Return if State Occurs
State of Economy	Probability of State of Economy	Stock A	Stock B
Recession	.20	.05	.20
Normal	.40	.10	.10
Boom	.40	.13	.25

a. Calculate the expected return for the two stocks.

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