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Business, 30.12.2020 02:30 mxlx27

You decide to invest in a portfolio consisting of 40 percent Stock A, 30 percent Stock B, and the remainder in Stock C. Based on the following information, what is the expected return of your portfolio? Probability of State Return if State Stock
State of Economy of Economy Stock A Stock B Stock C
Recession -20 -18.2% 3.6% -22.5%
Normal -51 10.8% 8.2% 16.8%
Boom -29 28.0% 15.5% 31.4%
a. 11.14%.
b. 13.73%.
c. 12.59%.
d. 71.62%.
e. 10.65%.

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