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Consider the following two stocks. Probabilities ( pi ) Stock a Stock b Recession p 1 = 3 1 % -
Consider the following two stocks.
Probabilities pi
Stock a Stock b
Recession p
Normal p
Boom p
What is the expected return of each stock? Enter your answers as a percentage rounded to decimal places. Do not enter the percentage sign in your answer.
ra
Number
rb
Number
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