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1. Based on the following information, calculate the expected return and standard deviation: State of Economy Probability of State of Economy Rate of Return if

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1. Based on the following information, calculate the expected return and standard deviation: State of Economy Probability of State of Economy Rate of Return if State Occurs Depression Recession Normal Boom -.105 .059 .130 .211 2. You own a portfolio that has $2,700 invested in Stock A and $3,800 invested in Stock B. If the expected returns on these stocks are 9.5 percent and 14 percent, respectively, what is the expected return on the portfolio

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