"onsider the following information: Rate of Return if State Occurs State of Economy Probability of State of Economy Stock A Stock B Stock C Boom .15 .34 .44 .35 Good .55 .18 .15 .09 Poor .25 β.02 β.05 β.04 Bust .05 β.12 β.30 β.07 Your portfolio is invested 30 percent each in A and C, and 40 percent in B. What is the expected return of the portfolio?"
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