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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 of A and

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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 of A and B where you have invested 40% of your wealth in stock A? State of Economy Normal Recession Probability of State of Economy 45% 55% Rate of Return if State Occurs Stock A Stock B 14% 17% -22% -28%

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