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FinanceQ&A LibraryConsider the following table, which gives a security analyst's expected return on two stocks for two particular market returns: Market return Aggressive Stock Defensive Stock 7% 4% 2.5% 25 38 16 What is the expected rate of return on each stock if the market return is equally likely to be 7% or 25%?Question

Consider the following table, which gives a security analyst's expected return on two stocks for two particular market returns:

Market return | Aggressive Stock | Defensive Stock |

7% | 4% | 2.5% |

25 | 38 | 16 |

What is the expected rate of return on each stock if the market return is equally likely to be 7% or 25%?

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