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What are the expected returns for Stock A and Stock B respectively? State Probability Return on A Return on B Boom .10 16% -2% Normal

What are the expected returns for Stock A and Stock B respectively? State Probability Return on A Return on B Boom .10 16% -2% Normal .50 10% 5% Bust .40 5% 9% A) 8.0%, 6.5% C) 8.2%, 3.9% B) 8.6%, 5.5% D) 8.6%, 5.9%

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