You are comparing stock A to stock B. Given the following information, what is the expected return and risk of a portfolio of A and B where you have invested 40% of your wealth in stock A? State of Economy Probability of State of Economy Stock A- (Rate of Return if State Occurs) Stock B- (Rate of Return if State Occurs) Normal 45% 14% 17% Recession 55% -22% -28%

You are comparing stock A to stock B. Given the following information, what is the expected return and risk of a portfolio of A and B where you have invested 40% of your wealth in stock A? State of...

You are comparing stock A to stock B. Given the following information, what is the expected return and risk of a portfolio of A and B where you have invested 40% of your wealth in stock A?

State of Economy	Probability of State of Economy	Stock A- (Rate of Return if State Occurs)	Stock B- (Rate of Return if State Occurs)
Normal	45%	14%	17%
Recession	55%	-22%	-28%

Jun 10, 2022

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