Question: Please do it as early as possible The following are possible states of the economy and the returns associated with stocks A and B in

 Please do it as early as possible The following are possible

Please do it as early as possible

The following are possible states of the economy and the returns associated with stocks A and B in those states. State Good Normal Bad Probability 0.3 0.4 0.3 Return on A 24% 36% 48% Return on B 30% 18% -6% Calculate the expected return of a portfolio comprised of stocks A and B. The weight in stock A is 65%

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