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You have a portfolio which is comprised of 35 percent of stock X and 65 percent of stock Y. What is the expected rate of
You have a portfolio which is comprised of 35 percent of stock X and 65 percent of stock Y. What is the expected rate of return on this portfolio? State of the Economy Probability of State of Economy Boom Normal Recession 0.19 0.70 0.11 Rate of Return if State Occurs Stock X Stock Y 45% 33% 34% 22% -32% 16% 22.80 percent 21.73 percent 25.32 percent d 19.70 percent 22.11 percent
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