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D Question 7 10 pts 7. Investment: There are two assets and three states of the economy: State of Economy Recession Normal Boom Probability of

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D Question 7 10 pts 7. Investment: There are two assets and three states of the economy: State of Economy Recession Normal Boom Probability of State of Economy 30 50 20 Rate of Return of State Occurs Stock A Stock B -.15 20 30 .60 .40 20 Suppose you have $20,000 total. If you put $15,000 in Stock A and the remainder in Stock B, what will be the expected return of your portfolio? A. 0.2038 OB. 0.2075 OC. 0.2132 OD. 0.2201 O E.0.3601

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