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The probability distributions of all the possible returns on the Bharat foods stock and Oriental shipping stocks is given below. Calculate the expected return and

The probability distributions of all the possible returns on the Bharat foods stock and Oriental shipping stocks is given below. Calculate the expected return and risk associated with each investment.

Rate of Return (%)

State of the economy

Probability of occurrence

Bharat Foods

Oriental shop

Boom

0.30

16

40

Normal

0.50

11

10

Recession

0.20

6

-20

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