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Rate of Return If State Occurs State of Probability of Economy State of Economy Stock A Stock B Stock C Boom .65 .11 .19 .37

Rate of Return If State Occurs State of Probability of Economy State of Economy Stock A Stock B Stock C Boom .65 .11 .19 .37 Bust .35 .12 .06 .05 a. What is the expected return on an equally weighted portfolio of these three stocks?

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