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plz asap solve it thx You have decided to invest $100,000 on stock A and $60,000 on stock B. You believe that the probabilities of
plz asap solve it thx
You have decided to invest $100,000 on stock A and $60,000 on stock B. You believe that the probabilities of having a boom next year is 20%, of having a stable economy is 55%, and of having a recession is 25%. For boom, the Stock A price next year is $37 and the dividend next year is $3. For stable, the Stock A price next year is $33 and the dividend next year is $2. For recession, the Stock A price next year is $25 and the dividend next year is $0. For boom, the Stock B price next year is $18 and the dividend next year is $0. For stable, the Stock B price next year is $15 and the dividend next year is $0. For recession, the Stock B price next year is $9 and the dividend next year is $0. Stock A's current price is $25, and stock B's current price is $12. What is the expected rate of return of your portfolio over the following year? The rate is 27.81% The rate is 34.00% The rate is 17.50%. The rate is 23.69% Step by Step Solution
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