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There is a 58.30% probability of an average economy and a 41.70% probability of an above average economy. You invest 28.40% of your money
There is a 58.30% probability of an average economy and a 41.70% probability of an above average economy. You invest 28.40% of your money in Stock S and 71.60% of your money in Stock T. In an average economy the expected returns for Stock S and Stock T are 5.60% and 6.60%, respectively. In an above average economy the the expected returns for Stock S and T are 36.00% and 32.10%, respectively. What is the expected return for this two stock portfolio?
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