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Use the following table of states of the economy and stock returns to calculate the expected return on a portfolio of 59 percent Roten and

Use the following table of states of the economy and stock returns to calculate the expected return on a portfolio of 59 percent Roten and the rest in Bradley.

Security

if State

Returns

Occurs

Prob of State of Economy Roten Bradley
Bust 0.3 -6% 26%
Boom ? 48 10

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