Assume that happy days inc pays an 8 percent return during, Ask an Expert

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Assume that Happy Days, Inc., pays an 8 percent return during expansions and a zero percent return during recessions with certainty. Sad Days, Inc., pays a zero percent return in expansions and an 8 percent return in recessions with certainty.

Show how the fluctuation in return is eliminated if an investor splits his or her surplus funds equally between HappyDays and SadDays.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91965396

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