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Consider the following information: Rate of Return if State Probability of State of Economy Occurs State of Economy Stock A Stock B Recession 10

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Consider the following information: Rate of Return if State Probability of State of Economy Occurs State of Economy Stock A Stock B Recession 10 .06 -19 Normal .60 .09 .16 Boom 30 .15 .35 Calculate the expected return for Stock A. Expected retur 10.50% 10.50% 10.02% 11.03% 9.95% Calculate the expected return for Stock B. Expected return

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