Question: If Microsoft stockholders expect either a 24% return or a 2% return, each with a 50% probability, and Apple computer shareholders expect a 10.5% return
If Microsoft stockholders expect either a 24% return or a 2% return, each with a 50% probability, and Apple computer shareholders expect a 10.5% return with certainty, what is the expected return from a portfolio comprised of equal amounts of stock from both firms?
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