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Raffaella is comparing Stock A to Stock B. Given the following information, what can Raffaella compute to be the difference in the expected returns of
Raffaella is comparing Stock A to Stock B. Given the following information, what can Raffaella compute to be the difference in the expected returns of these two securities? Rate of Return State of Economy Probability of State of Economy if State Occurs Stock A Stock B Normal 45% 12% 17% Recession 55% - 22% -31% A. 2.70 percent B. 13.45 percent O C. -0.85 percent D. 13.55 percent E. 3.05 percent
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