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There is a 26.90% probability of an average economy and a 73.10% probability of an above average economy. You invest 17.45% of your money in Stock S and 82.55% of your money in Stock T. In an average economy the expected returns for Stock S and Stock T are 6.29% and 12.79% , respectively. In an above average economy the the expected returns for Stock S and T are 31.03% and 16.38% , respectively.

What is the expected return for this two stock portfolio?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92853669

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