7) expected return of 7%. What are the portfolio weights? Your portfolio consists of 50% stock...
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7) expected return of 7%. What are the portfolio weights? Your portfolio consists of 50% stock A, 40% stock B, and 10% stock C with the following assumptions. What is the expected return and the standard deviation of your portfolio? State of economy Probability of the state Return of A Return of B Return of C Boom 0.20 17% 28% 40% Normal 0.50 8% 6% 13% Recession 0.30 -12% -5% -50% 7) expected return of 7%. What are the portfolio weights? Your portfolio consists of 50% stock A, 40% stock B, and 10% stock C with the following assumptions. What is the expected return and the standard deviation of your portfolio? State of economy Probability of the state Return of A Return of B Return of C Boom 0.20 17% 28% 40% Normal 0.50 8% 6% 13% Recession 0.30 -12% -5% -50%
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