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Given the following forecasts, what is the expected return for a portfolio that has $1,500 invested in Stock A and $4,500 invested in Stock B?

Given the following forecasts, what is the expected return for a portfolio that has $1,500 invested in Stock A and $4,500 invested in Stock B?

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State of the Economy Expansion Stable Recession Probability of Occurrence 20%. 50% 30% Stock A Expected Return 25% 15% -5% Stock B Expected Return 35% 25% -15%

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