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The returns of two stocks in different economic conditions are presented in the following table: Calculate the expected return of a $50,000 portfolio in which

The returns of two stocks in different economic conditions are presented in the following table: Calculate the expected return of a $50,000 portfolio in which $15,000 is invested in Stock A.
Probability of State .15 Economic State Recession Normal Boom Return on Stock A -10% 10% 20% Return on Stock B -6% 6% 12% .65 .20

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