Consider the following two stocks. Probabilities (P) Stock A Stock B Recession P1 = 24% -10%...
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Consider the following two stocks. Probabilities (P) Stock "A" Stock "B" Recession P1 = 24% -10% 8% Normal P2 = 27% 5% Boom P3 = 49% 19% -8% 27% The portfolio weights for stocks "A" and "B" are 0.2 and 0.8, respectively. What are the expected returns of stock "A" and "B"? Enter your answers as a percentage. Do not put the percent sign in your answers. Round your answers to 2 DECIMAL PLACES. E(ra) = E(b) = Click "Verify" to proceed to the next part of the question. Section Attempt 1 of 1 Verify Consider the following two stocks. Probabilities (P) Stock "A" Stock "B" Recession P1 = 24% -10% 8% Normal P2 = 27% 5% Boom P3 = 49% 19% -8% 27% The portfolio weights for stocks "A" and "B" are 0.2 and 0.8, respectively. What are the expected returns of stock "A" and "B"? Enter your answers as a percentage. Do not put the percent sign in your answers. Round your answers to 2 DECIMAL PLACES. E(ra) = E(b) = Click "Verify" to proceed to the next part of the question. Section Attempt 1 of 1 Verify
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