ution 4 yet wered ned out of 3 Flag There are two expected states of the economy. The probability of a normal economy is

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Ution 4 Yet Wered Ned Out Of 3 Flag There Are Two Expected States Of The Economy The Probability Of A Normal Economy Is 1 (21.92 KiB) Viewed 36 times

ution 4 yet wered ned out of 3 Flag There are two expected states of the economy. The probability of a normal economy is 60 percent and the probability of a recension is 40 percent. If the economy is normal, Security A is expected to earn 15 percent and Security B is expected to earn 8 percent. the economy goes into a recession Security A is expected to earn 5 percent and Security B is expected to earn 18 percent. What is the expected return on a portfolio that is equally divided among stock A, stock B, and a risk free asset? The expected return on the risk-free asset is a percent regardless of the state of the connomy Select one: O a 9.00 percent b. 8.97 percent Oc 11.82 percent O d. 10.11 percent