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You have a portfolio which is comprised of 70% of Stock A and 30% of Stock B. What is the expected rate of return on

You have a portfolio which is comprised of 70% of Stock A and 30% of Stock B. What is the expected rate of return on this portfolio?

Rate of Return if State Occurs State of the Economy Probability of State of Economy Stock A Stock B Boom .25 24 % 15 % Normal .65 12 % 12 % Recession .10 -36 % 8 %

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