Question #7 to #8 use the following table. If you invest an equal amount of...

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Finance

Question #7 to #8 use the following table.

If you invest an equal amount of money in the following three stocks and form a portfolio, what is the expected return of this portfolio?

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State of Economy Probability of State of Rate of Return If State Economy Occurs Stock Stock Stock .75 Boom Bust .25 .06 .11 .15 -.04 .25 -.08

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