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What is the expected return on a portfolio comprised of $4,000 in stock M and $6,000 in stock N if the economy enjoys a boom
What is the expected return on a portfolio comprised of $4,000 in stock M and $6,000 in stock N if the economy enjoys a boom period?
| Returns if State Occurs | |||
| State of Economy | Probability of State of Economy | Stock M | Stock N |
| Boom | 10% | 18% | 10% |
| Normal | 75% | 7% | 8% |
| Recession | 15% | -20% | 6% |
Multiple Choice
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6.4%
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6.8%
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10.4%
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13.2%
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14.0%
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Managerial Accounting
Authors: Ray Garrison, Eric Noreen, Peter Brewer
16th edition
978-1259307416
