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You are comparing stock A to stock B. Given the following information, what is the expected return and risk of a portfolio A and B

You are comparing stock A to stock B. Given the following information, what is the expected return and risk of a portfolio A and B where you invested 40% of your wealth in stock A?

State of Economy Probability of State if Economy Rate of Return if State Occurs

Normal 45% Stock A 14% Stock B 17%

Recession55% Stock B -22% Stock B -28%

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