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You are given the following subjective information on the Molokai Megalopolis Planning Company. You will notice the piece of paper is torn and so one

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You are given the following subjective information on the Molokai Megalopolis Planning Company. You will notice the piece of paper is torn and so one of the probabilities is missing. But you believe one of the three states of nature listed below will occur so you can infer the third probability. The probability of a normal state of nature occurring is: a. The expected return on the portfolio is b. State Prob (Pi) Return (ka) Boom 0.5 60% Normal 20% Recession -10% 2 A. a. 0.30 b. 23.33 Ba.o b. 23.33 Ca 0.30 b. 34.00 D. a. 0.0 b. 28.00 E. Something Else

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