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Suppose you observe the situation in the table below. What is the expected return of a portfolio with 40% stock A and 60% stock


 

Suppose you observe the situation in the table below. What is the expected return of a portfolio with 40% stock A and 60% stock B? Return if State Occurs State of Economy Probability of State Stock A Stock B Bust .15 -.08 -.05 Normal .70 .13 .14 Boom .15 .48 .29

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