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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

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 -23 Normal .50 .09 Boom .30 .11 13 .14 .31 Calculate the expected return for Stock A. Calculate the expected return for Stock B.

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