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Portfolio M contains asset A and B. If the weight of A in portfolio Mis 40% and the expected return of asset Ais 20%, using
Portfolio M contains asset A and B. If the weight of A in portfolio Mis 40% and the expected return of asset Ais 20%, using the following table, calculate the expected return for the portfolio M. The economic state probability Return of the stock B Normal 50% 8% Boom 50% 14% Select one: a. 14.6 b.13.4 c.12.2 d. 10.8
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