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Given the following information, the expected return on a portfolio composed of 65% of Abel Co and 35% of Zorro Ltd is closest to: Scenario
Given the following information, the expected return on a portfolio composed of 65% of Abel Co and 35% of Zorro Ltd is closest to:
Scenario | Probability | Abel | Zorro |
Rapid Expansion | 20% | 9.50% | -2.50% |
Moderate Expansion | 30% | 4.75% | 5.00% |
Recession | 50% | -1.80% | 10.40% |
A) 4.20%
B) 3.75%
C) 4.23%
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