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For an asset A we assume with a 28.31% probability that it does well in the current economic environment. In that case the expected return
For an asset A we assume with a 28.31% probability that it does well in the current economic environment. In that case the expected return is 16.82%, otherwise it is 3.58%. Furthermore, we have an asset B for which we expect the following: 24.97% return with 5.25% probability, 8.67% return with a 71.11% probability and 1.15% return otherwise. If we create a portfolio consisting of 62.01% of asset A and the remainder in asset B, what is the expected return of this portfolio? (answer as a percentage)
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