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What is the expected return of an equally weighted portfolio comprised of the following three stocks? Probability of Rate of Return State of State of
What is the expected return of an equally weighted portfolio comprised of the following three stocks? Probability of Rate of Return State of State of Economy Economy if State Occurs Stock A Stock B Stock C Boom .25 .19 .13 .07 Normal .55 .15 .05 .13 Bust .20 .29 .14 .22 0 7.90 percent 9.82 percent O 9.48 percent 10.37 percent O 8.30 percent
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