Question: Answer the question based on the information below: State of Economy Probability Stock A's return Stock B's return Boom 15% - 30% Recession .6 5%

Answer the question based on the information below: State of Economy Probability Stock A's return Stock B's return Boom 15% - 30% Recession .6 5% 40% If you invest $50,000 in each of stocks A and B, what is the expected return for your portfolio? 10.5% 13.5% 11.0% 12.0% 12.5%

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