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You are considering investing equally in two assets. Asset A is an investment in gold while Asset B is an equity fund aiming at moderate
You are considering investing equally in two assets. Asset A is an investment in gold while Asset B is an equity fund aiming at moderate growth. Below is the data pertaining to each investment.
State of the Economy | Probability of Occurrence | Return on Asset A | Return on Asset B |
Recession | 10% | 8% | 2% |
Stable | 30% | 3% | 4% |
Good | 40% | 2% | 10% |
Boom | 20% | 4% | 20% |
Based upon the data given, calculate the expected return for each asset.
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