What is the probability of a recession

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Question: An analyst has predicted the following returns for Stocks A and B in three possible states o f the economy.

835_Recession.png

a. What is the probability of a recession?

b. Calculate the expected return of Stocks A and B.

c. Calculate the expected return of a portfolio that is invested 55% in A and 45% in B.

Reference no: EM131460457

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