Returns and Standard Deviation s Consider the following information: State of Economy Probability of State of Economy

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Returns and Standard Deviation s Consider the following information:

State of Economy Probability of State of Economy Rate of Return if State Occurs Stock A Stock B Stock C Boom .20 .24 .45 .33 Good .35 .09 .10 .15 Poor .30 .03 −.10 −.05 Bust .15 −.05 −.25 −.09

a. Your portfolio is invested 30 percent each in A and C , and 40 percent in B . What is the expected return of the portfolio?

b. What is the variance of this portfolio? The standard deviation?

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Corporate Finance With Connect Access Card

ISBN: 978-1259672484

10th Edition

Authors: Stephen Ross ,Randolph Westerfield ,Jeffrey Jaffe

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Question Posted: Jul 10, 2024 08:00 AM

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Returns and Standard Deviation s Consider the following information: State of Economy Probability of State of Economy

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Corporate Finance With Connect Access Card

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