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Assuming you have invested only in two stocks, A and B

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Assuming you have invested only in two stocks, A and B. The returns on the two stocks depend on the following three states of economy, which are equally likely to happen: TABLEQ2b: Returns of Stock A and Stock B State of Economy Return on Stock A (%) Return on Stock B (%) Bear 6.30 (3.70) Normal 10.50 6.40 Bull 15.60 25.30 Discuss the characteristics of the two stocks in TABLEQ2b above and propose the stock (either Stock A or Stock B) that offers greater returns using any of the risk-return tradeoff models or methods.