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State of Probability Return on Return on the economy of state Asset 1 Asset 2 Boom 0.30 20% -10% Normal 0.30 10% 6% Recession 0.40

State of Probability Return on Return on

the economy of state Asset 1 Asset 2

Boom 0.30 20% -10%

Normal 0.30 10% 6%

Recession 0.40 -5% 12%

rist of asset A

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