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Consider the following information: Rate of Return if State Occurs State of Probability of State of Economy Stock Stock Stock C A B Economy Boom
Consider the following information: Rate of Return if State Occurs State of Probability of State of Economy Stock Stock Stock C A B Economy Boom 0.6 0.11 0.14 0.20 Bust 0.4 0.04 0.08 -.06 What is the expected return on an equally weighted portfolio of these three stocks? O 15% 0 11.4% O 13.5% 9.8%
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