The expected return of the portfolio considers the probability of various states of the economy.
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Q2: Diversification works because forming stocks into portfolios
Q3: Diversification works because unsystematic risk exists.
Q4: The weights that are commonly used when
Q5: A decrease in a firm's cost of
Q6: Announcement = Expected part - Surprise
Q8: The expected return of the portfolio considers
Q9: A decrease in the rate of inflation
Q10: The expected return of the portfolio considers
Q11: You believe that the possible returns on
Q12: Diversification works because firm-specific risk can be
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