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Consider the following information. Stock 1 Stock 2 Probability Recession -20% -15% 0.2 Market at equilibrium Boom economy 18% 50% 20% 10% 0.3 0.5 (Q14)

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Consider the following information. Stock 1 Stock 2 Probability Recession -20% -15% 0.2 Market at equilibrium Boom economy 18% 50% 20% 10% 0.3 0.5 (Q14) What is the expected return for stock 1? (Q15) What is the expected return for stock 2? (Q16) What is the standard deviation of return on stock 1? (Q17) What is the standard deviation of return on stock 2? (Q18) Assume that of your $10,000 portfolio, you invest $9,000 in stock 1 and $1,000 in stock 2. What is the expected return on your portfolio

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