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You have the following predicted returns for stocks X and Y in three states of the economy. What are the expected returns? State Probability X

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You have the following predicted returns for stocks X and Y in three states of the economy. What are the expected returns? State Probability X Y Boom 0.2 25% 35% Normal 0.4 10% 10% 0.3 0% 10% Slowdown Recession 0.1 -5% 5% Show your work here

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