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Consider the following information: State of Economy Probability of State of Economy Rate of Return if State Occurs Stock A Stock B Recession 0 .

Consider the following information:
State of Economy Probability of State of Economy Rate of Return if State Occurs
Stock A Stock B
Recession 0.300.050.15
Normal 0.550.150.15
Boom 0.150.200.35
Calculate the expected return for the two stocks.

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