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You are going to make a portfolio consisting of 60 % of Bank of America...

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You are going to make a portfolio consisting of 60 % of Bank of America Stock and 40 % of Caterpillar Stock. You also have the following information: BOA State i Probability of State i Caterpillar Return Return Boom 90 % 15 % 39 % Bust 10 % 4 % -1 % What is the expected return for the portfolio? (Answer as a percentage and Round to 2 decimals)

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