What is the expected return on a portfolio?
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What is the expected return on a portfolio that will decline in value by 13% in a recession, will increase by 16% in normal times, and will increase by 23% during boom times if each scenario has equal likelihood?
A) 8.67%
B) 13.00%
C) 13.43%
D) 17.33%
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Solution Summary
Expected return is computed for you to support the selection.
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