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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

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? (Show your work) image text in transcribed

Rate of Return if Probability of State of Economy Normal Recession State Occurs Stock B State of Economy 45% 55% Stock A 14% -22% 17% -28%

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