Question: while Stock B declines by 15%. In the good state, Stock A increases by 15% while Stock B increases by 20%. What is the expected

while Stock B declines by 15%. In the good state, Stock A increases by 15% while Stock B increases by 20%. What is

while Stock B declines by 15%. In the good state, Stock A increases by 15% while Stock B increases by 20%. What is the expected return on stock A and B, respectively? Suppose a portfolio consisting of 60% of stock A and 40% of stock B. What is the expected return of this portfolio? 7.5%13.3%11.9%9.2%15.3%

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