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You are comparing stock A to stock B. Given the following information, what is the percent difference in the expected returns of these two securities?
You are comparing stock A to stock B. Given the following information, what is the percent difference in the expected returns of these two securities? (HINT: Find expected return of each stock and compare the 2) Returns if State Occurs Probability State of of State of Stock A Stock B Economy Economy Normal 35% 17% 20% Recession 65% -19% -25% -2.85% -3.21% -1.59% -2.22% 0 -1.95%
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