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You are given the following information about Stocks 1 and Stock 2. Rate of Return if State Occurs State of Economy Recession Normal Boom Probability

You are given the following information about Stocks 1 and Stock 2.

Rate of Return if State Occurs State of Economy Recession Normal Boom Probability of State of Economy 0.25 0.5 0.25 Stock 1 0.11 0.29 0.13 Stock 2 -0.4 0.10 o .56

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