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State of Economy Boom Good Poor Bust Rate of Return if State Occurs Probability of State of Economy Stock A Stock B Stock C .20

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State of Economy Boom Good Poor Bust Rate of Return if State Occurs Probability of State of Economy Stock A Stock B Stock C .20 .36 .46 .26 .55 .20 17 .11 --04 -.07 -.06 .05 -14 -.32 -.09 .20 Requirement 1: Your portfolio is invested 26 percent each in A and C, and 48 percent in B. What is the expected return of the portfolio? (Do not round your intermediate calculations.) (Click to spect) 28.30% 10.90% 14.30% 17.80% 21.00%

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