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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 50 percent Roten and

Use the following table of states of the economy and stock returns to calculate the expected return on a portfolio of 50 percent Roten and the rest in Bradley.

Security

if State

Returns

Occurs

Prob of State of Economy Roten Bradley
Bust 0.3 -7% 31%
Boom ? 49 13

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