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Your portfolio is made up of 75 percent of stock A and 25 percent of stock B. What is the portfolio's expected rate of return?

Your portfolio is made up of 75 percent of stock A and 25 percent of stock B. What is the portfolio's expected rate of return? Please show work if possible

State Probability A B

Boom .15 26% 33%

Normal .85 7% 2%

A. 7.85 B. 8.73 C. 9.05 D. 8.35

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