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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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