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Qn 5. In the following case, if the Risk free rate is 6%, which stock would you recommend and why. State of nature Prob Stock

Qn 5. In the following case, if the Risk free rate is 6%, which stock would you recommend and why. State of nature Prob Stock A Stock B 1 30.00 15.00 2 0.20 0.40 0.25 1.00 -12.00 20.00 3 8.00 4 0.15 27.00 15.00

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