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What Is the Expected Return on a Portfolio That Will

Question 12

Multiple Choice

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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