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Given the following information what is the expected return on a portfolio that is invested 35 percent in Stock A 45 percent in Stock B,

Given the following information what is the expected return on a portfolio that is invested 35 percent in Stock A 45 percent in Stock B, and the balance in Stock C? State of Economy Boom Normal Recession Probability of State Occurring .12 .85 .03 Rate of Return of State Occurs: Stock StockB Stock C (96) (96) (%) 16.7 18.9 6.4 14.2 11.4 9.5 6.4 -3.8 11.2

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