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Here are the data to use for this question, Probability Stock X Return Stock Y Return Good economy .80 20% 40% Bad economy .20 -10%

Here are the data to use for this question,

Probability Stock X Return Stock Y Return

Good economy .80 20% 40%

Bad economy .20 -10% -40%

What is the expected return on a portfolio of 25% in X and 75% in Y?

a)

21.5%

b)

38%

c)

19%

d)

10%

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