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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 1 2

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

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