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What is the expected return on a portfolio that is equally weighted between Stocks M and N given the following information? State of Economy Probability
What is the expected return on a portfolio that is equally weighted between Stocks M and N given the following information? State of Economy Probability of State of Economy Rate of Return if State Occurs Stock M Stock N .14 .18 Boom Normal Recession .06 - .14 A. 5.28 percent B. 5.87 percent C. 6.00 percent D. 6.32 percent E. 6.40 percent
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