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Imagine two stocks: Stock A and Stock B. You plan to invest $200,000 in these two stocks and you believe that their returns will depend
Imagine two stocks: Stock A and Stock B. You plan to invest $200,000 in these two stocks and you believe that their returns will depend on the future state of the economy. There are four possible states and the information about each state with each stock's returns are summarized in the table below: Based on this information, if you want to generate a portfolio return of 9.80%, how much money should be invested in stock B ? $76,000 $56,000 $144,000 $92,000 $124,000
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