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Payoff Matrix Assignment 1. Suppose you have predicted the following returns for stocks C and T in three possible states of the economy. What are

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Payoff Matrix Assignment 1. Suppose you have predicted the following returns for stocks C and T in three possible states of the economy. What are the expected returns? Which stock would you advise to buy? Why? Boom Normal Recession Probability 0.3 0.5 0.2 Returns on Stock C 15 10 2 Returns on Stock T 25 20 1

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