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Consider the following information: State of Probability of State Rate of Return if State Occurs Economy of Economy Stock A Stock B Stock C Boom

Consider the following information:

State of Probability of State Rate of Return if State Occurs

Economy of Economy Stock A Stock B Stock C

Boom .70 .08 .02 .28

Bust .30 .17 .23 - .08

Expected return when weights are equal?

Variance of a portfolio invested 25 percent each in A and B and 50 percent in C?

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