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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 .35 .45 .25 45 20 .16 09 25 -02 -.05 -03 10 - 16 - 20 - 12 Your portfolio is invested 24 percent each in A and C, and 52 percent in B. What is the expected return of the portfolio

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