You are comparing stock A to stock B. Given the following information, what is the...

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You are comparing stock A to stock B. Given the following information, what is the difference in the expected returns of these two securities? State of Economy Probability of State of Economy Rate of Return if State Occurs Stock A Stock B Normal 0.45 12% 17% Recession 0.55 -22% 31% 13.55 percent O 2.70 percent -0.85 percent O 3.05 percent 13.45 percent

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