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Consider the following information: State of Economy Probability of State of Economy Stock A Stock B Stock C Boom .05 0.55 0.60 0.47 Good .15
Consider the following information: State of Economy Probability of State of Economy Stock A Stock B Stock C Boom .05 0.55 0.60 0.47 Good .15 0.46 0.25 0.28 Poor .35 -0.01 -0.06 -0.04 Bust .45 -0.12 -0.10 -0.09 a. Your portfolio is invested 25% each in A and C, and 50 percent in B. What is the expected return of the portfolio
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