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Consider the following information: State of Probability of state Return of Stock A Return of Stock B Return of Stock C economy Good 0.2 26.6%
Consider the following information: State of Probability of state Return of Stock A Return of Stock B Return of Stock C economy Good 0.2 26.6% 39.2% 13.7% Normal 0.6 13.6% 15.0% 5.1% Poor 0.2 -5.4% -33.1% -2.1% Your portfolio is invested 39% in Stock A, 38% in Stock B, and the rest in Stock C. What is the expected return on your portfolio? Report your answer as a percentage with 2-digit precision (ex. show 12.3456% as 12.35)
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