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Q1) There is a 31.60% probability of a below average economy and a 68.40% probability of an average economy. If there is a below average
"Q1) There is a 31.60% probability of a below average economy and a 68.40% probability of an average economy. If there is a below average economy stocks A and B will have returns of -9.50% and 11.20%, respectively. If there is an average economy stocks A and B will have returns of 5.30% and -5.40%, respectively. Compute the:
a) Expected Return for Stock A:
b) Expected Return for Stock B
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