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What is the expected return to the stocks a and b

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Question 1: What is the expected return to the following two stocks: Stock A and Stock B?

State of Weather           Probability              Return on stock A               Return on stock B

Very Cold                     0.1                               -15 %                         35 %

Cold                               0.3                               -5%                         15 %

Average                           0.4                            10 %                            5%

Hot                                  0.2                              30 %                      -5%

Reference no: EM132568456

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