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You have a portfolio which is comprised of 75 percent of stock A and 25 percent of stock B. What is the expected rate of
You have a portfolio which is comprised of 75 percent of stock A and 25 percent of stock B. What is the expected rate of return on this portfolio? Probability of Rate of Return State of if State Occurs Stock A Stock B State of the Economy Boom Normal Recession Economy 0.10 0.85 0.05 24% 12% -36% 15% 12% 8% Multiple Choice 12.80 percent 10.87 percent 11.13 percent 12.11 percent 10.70 percent
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