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Business, 18.05.2021 18:50 maxpaz782

A portfolio consists of $18,740 of Stock K and $31,910 of Stock L. Stock K is expected to return 17 percent in a booming economy, lose 6 percent in a recession, and gain 9 percent in a normal economy. Stock L is expected to return 4 percent in a booming economy, 13 percent in a recession, and 10 percent in a normal economy. The probability of the economy booming is 16 percent. What is the expected rate of return on the portfolio if the economy enters a recession?

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A portfolio consists of $18,740 of Stock K and $31,910 of Stock L. Stock K is expected to return 17...
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