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State of Economy Probability of State of Economy 0.15 Return on Stock A Return on Stock B Recession Normal Boom -25% 15% 38% 19% 0.35

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State of Economy Probability of State of Economy 0.15 Return on Stock A Return on Stock B Recession Normal Boom -25% 15% 38% 19% 0.35 0.50 9% 14% Suppose you have $10,000 total. If you put $8,000 in Stock A and the remainder in Stock 8, what will be the expected return on your portfolio? Oa. 11.94% Ob.14.38% Oc.18.46% Od.16.45%

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